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Required information Skip to question [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Current Yr

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[The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow.

At December 31 Current Yr 1 Yr Ago 2 Yrs Ago
Assets
Cash $ 24,202 $ 28,573 $ 29,472
Accounts receivable, net 70,145 49,012 38,899
Merchandise inventory 88,194 66,729 42,699
Prepaid expenses 7,638 7,352 3,407
Plant assets, net 220,024 201,957 186,223
Total assets $ 410,203 $ 353,623 $ 300,700
Liabilities and Equity
Accounts payable $ 103,162 $ 57,969 $ 38,899
Long-term notes payable 75,576 82,960 66,455
Common stock, $10 par value 162,500 163,500 162,500
Retained earnings 68,965 49,194 32,846
Total liabilities and equity $ 410,203 $ 353,623 $ 300,700

(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?

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