Exercise 17-7 Analyzing liquidity LO P3 Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ago $ At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity 34,909 101,178 129,808 11,586 326,276 $ 603,757 $ 41,638 $ 42,106 72,139 56,141 95,326 60,992 11,258 4,678 300,119 257, 183 $ 520,480 $ 421,100 $ 154,846 $ 85,322 $ 54,473 112,371 162,500 174,040 $ 603,757 122,105 93,063 162,500 162,500 150,553 111,064 $ 520,480 $ 421,100 (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. Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2B Compute the current ratio for each of the three years. Current Ratio 1 Choose Denominator: Choose Numerator: Current Ratio 1 = Current ratio Il Current Yr: 1 Yr Ago: 2 Yrs Ago: to 1 to 1 = = to 1 Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2B Did the current ratio improve or worsen over the three year period? Current ratio Complete this question by entering your answers in the tabs below. Required 1A Required 15 Required 2A Required 28 Compute the acid-test ratio for each of the three years. Acid-test ratio Choose Numerator: Choose Denominator: - Acid-Test Ratio Acid-test ratio to 1 + Current Yr: 1 Yr Ago 2 Yrs Ago to 1 to 1 Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required. 2B Did the acid-test ratio improve or worsen over the three year period? Acid-test ratio