Exercise 17-7 (Algo) Analyzing liquidity LO P3

[The following information applies to the questions displayed below.]

Simon Company's year-end balance sheets follow.

At December 31	Current Year	1 Year Ago	2 Years Ago
Assets
Cash	$ 29,030	$ 34,982	$ 36,436
Accounts receivable, net	89,341	62,444	49,063
Merchandise inventory	107,967	83,324	50,710
Prepaid expenses	9,734	9,091	3,928
Plant assets, net	271,173	247,439	224,263
Total assets	$ 507,245	$ 437,280	$ 364,400
Liabilities and Equity
Accounts payable	$ 122,515	$ 73,900	$ 47,620
Long-term notes payable	93,455	98,563	81,338
Common stock, $10 par value	163,500	163,500	162,500
Retained earnings	127,775	101,317	72,942
Total liabilities and equity	$ 507,245	$ 437,280	$ 364,400

For both the current year and one year ago, compute the following ratios:period?

Exercise 17-7 (Algo) Analyzing liquidity LO P3 (1-a) Compute the current ratio for each of the three years. (1-b) Did the current ratio improve or worsen over the three-year period? (2-a) Compute the acid-test ratio for each of the three years. (2-b) Did the acid-test ratio improve or worsen over the three-year period? Complete this question by entering your answers in the tabs below. Compute the current ratio for each of the three years. Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. For both the current year and one year ago, compute the following ratios: Exercise 17-7 (Algo) Analyzing liquidity LO P3 (1-a) Compute the current ratio for each of the three years. (1-b) Did the current ratio improve or worsen over the three-year period? (2-a) Compute the acid-test ratio for each of the three years. (2-b) Did the acid-test ratio improve or worsen over the three-year period? Exercise 17-7 (Algo) Analyzing liquidity LO P3 (1-a) Compute the current ratio for each of the three years. (1-b) Did the current ratio improve or worsen over the three (2-a) Compute the acid-test ratio for each of the three years (2-b) Did the acid-test ratio improve or worsen over the thre Complete this question by entering your answers in tr Did the current ratio improve or worsen over the three-year Complete this question by entering your answers in Did the acid-test ratio improve or worsen over the three-ye Complete this question by entering your answers in the tabs below. Compute the acid-test ratio for each of the three years