Required information i [The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. At December 31 Assets Cash ces Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Current Year 1 Year Ago 2 Years Ago $ 29,769 86,279 $ 36,217 $ 36,247 62,759 48,329 107,372 80,468 53,582 9,782 281,649 9,321 3,986 255,072 231,456 $ 514,851 $443,837 $373,600 $120,190 $74,258 $40,022 96,792 101,062 03,391 162,500 162,500 127,361 106,017 $ 514,951 $443,837 Common stock, $10 par value Retained earnings Total liabilities and equity For both the current year and one year ago, compute the following ratios: (1-a) Compute the current ratip 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? 163,500 77,807 $ 373,600 Compute the current ratio for each of the three years. Numerator: Current Year: 1 Year Ago: 2 Years Ago: Current Ratio Denominator: Current Ratio Current ratio: to 1 to 1 to 1 Did the current ratio improve or worsen over the three-year period? Current ratio Compute the acid-test ratio for each of the three years. Current Year: 1 Year Ago: 2 Years Ago: + . Numerator: Short-term investments Acid-test ratio Denominator: Acid-Test Ratio Acid-test ratio to 1 to 1 . to 1 Did the acid-test ratio improve or worsen over the three-year period? Acid-test ratio