Exercise 17-7 Analyzing liquidity LO P3 Simon Companys year-end balance sheets follow.

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 $ 31,411 86,619 113,352 10,017 275,481 $ 516,880 $ 36,003 $ 36,386 61,758 50,515 83,258 53,266 9,451 4,210 255, 116 234,523 $ 445,586 $ 378,900 $ 127,416 $ 77,563 $ 51,015 99,117 162,500 127, 847 $ 516,880 100,435 86, 249 162,500 162,500 105,088 79, 136 $ 445,586 $ 378,900 (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. Required 1A Required 1B Required 2A Required 2B Compute the current ratio for each of the three years. Choose Numerator: Total liabilities = = Current Ratio 1 Choose Denominator: / Total assets / $ $ 1 $ Current Yr: 1 Yr Ago: 2 Yrs Ago: 516,880] = 445,586 = 378,900 = Current Ratio Current ratio to 1 0.00 to 1 0.00 to 1 $ Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2B Compute the acid-test ratio for each of the three years. Acid-test ratio Choose Numerator: 1 Choose Denominator: / = Acid-Test Ratio Acid-test ratio 0 to 1 0 to 1 0 to 1 Current Yr: 1 Yr Ago: 2 Yrs Ago: = + 1 1 +