! Required information The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Assets Cash Current Year 1 Year Ago 2 Years Ago Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable $ 30,552 85,077 108,059 $ 34,312 60,659 79,346 $ 36,464 48,619 50,763 9,742 274,247 9,191 254,145 3,932 221,322 $ 507,677 437,653 $ 361,100 $ 122,619 75,443 48,142 Long-term notes payable 97,352 101,667 Common stock, $10 par value 162,500 162,500 79,005 162,500 Retained earnings 125,206 98,043 71,453 Total liabilities and equity 507,677 437,653 $ 361,100 For both the current year and one year ago, compute the following ratios: (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? (2-0) 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? Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2B Compute the current ratio for each of the three years. Current Ratio Numerator: Denominator: Current Ratio Net sales /Total assets = Current ratio Current Year: = 0 to 1 1 Year Ago: 0 to 1 2 Years Ago: 0 to 1 < Required 1A Required 1B > Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2B Did the current ratio improve or worsen over the three-year period? Current ratio < Required 1A Required 2A > Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2B 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 1 Denominator: = Acid-Test Ratio Acid-test ratio + 1 1 = 0 to 1 0 to 1 < Required 1B Required 2B > 0 to 1 Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2B Did the acid-test ratio improve or worsen over the three-year period? Acid-test ratio < Required 2A Required 2B >