Please help me to understand this, thanks!

Acid-test ratio Choose Numerator Choose Denominator: Acid-Test Ratio . Current Yr: 1 Yr Ago: 2 Yrs Ago: +++ ++++ Acid-test ratio O to 1 O to 1 O to 1 11 Current Ratio Choose Numerator: Current assets Current Ratio 7 Choose Denominator: Current liabilities 1 Current Yr: 1 Yr Ago: 2 Yrs Ago: Current ratio 0 to 1 0 to 1 0 to 1 II 11 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 $ 37,073 102,233 132,473 11,475 326,798 $ 610,052 $ 41,652 $ 42,945 72,891 57,850 96,320 64,137 10,934 4,870 304, 110 277,398 $ 525,907 $ 447,200 $ 148,865 $ 88,878 $ 57, 259 113,543 162,500 185,144 $ 610,052 117,330 99,820 162,500 162,500 157,199 127,621 $ 525,907 $ 447,200