I need help with 17-7. I know the formula for the current ratio and for the acid-test ratio. The problem is that I don't remember which assets and liabilities are current, which are the short term investments, and current receivables. I need to know that in order to know which numbers to plug into the formula.

Chapter 17 Analysis of Financial Statements 637 At December 31 Current Ye 1 Yr Ago 2 Yrs Ago Assets Cash.......... Accounts receivable, net. Merchandise inventory......... Prepaid expenses........... Plant assets, net........... Total assets..... $ 31,800 89,500 112,500 10,700 278,500 $523,000 $ 35,625 62,500 82,500 9,375 255,000 $445,000 $ 37,800 50,200 54.000 5,000 230,500 $377,500 $129,900 $ 75,250 $ 51.250 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............ 98.500 163,500 131,100 $523,000 101,500 163,500 104.750 $445,000 83,500 163,500 79.250 $377,500 Refer to Simon Company's balance sheets in Exercise 17-6. (1) Compute the current ratio for each of the three years. Did the current ratio improve or worsen over the three-year period? (2) Compute the acid-test ratio for each of the three years. Did the acid-test ratio improve or worsen over the three-year period? Round ratios to two decimals. Exercise 17-7 Analyzing liquidity P3