Mixon Company's year-end balance sheets show the following: 2006 2005 2004 Cash $ 30,800 $ 35,625 $ 36,800 Accounts receivable, net 88,500 62,500 49,200 Merchandise inventory 111,500 82,500 53,000 Prepaid expenses. 9,700 9,375 4,000 Plant assets, net 277,500 255,000 229,500 Total assets $518,000 $445,000 $372,500 Accounts payable $128,900 $ 75,250 $ 49,250 Long-term notes payable secured by mortgages on plant assets 97,500 102,500 82,500 Common stock, $10 par value 162,500 162,500 162,500 Retained earnings 129,100 104.750 78,250 Total liabilities and equity $518,000 $445,000 $372,500 Required: Compare the year-end short-term liquidity position of this company at the end of 2006, 2005, and 2004 by computing the: (a) current ratio and (6) acid-test ratio. Comment on the ratio results