! Required information (The following information applies to the questions displayed below. Simon Company's year-end balance sheets follow. Current Year 1 Year Ago 2 Years 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 Common stock, $10 par value Retained earnings Total liabilities and equity $ 31,991 90,019 109,787 10,202 284,430 $ 526, 429 $ 37,395 64,170 83,117 9,625 259,511 $ 453,818 $ 38,586 49,920 55, 346 4,160 237,888 $ 385,900 $ 127,148 98,969 163,500 136, 812 $ 526,429 $ 78,229 103,334 162,500 109,755 $ 453,818 $ 51,448 85, 284 162,500 86,668 $ 385,900 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-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? 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 Denominator: Numerator: = 11 1 1 1 1 11 = Current Year: 1 Year Ago: 2 Years Ago: Current Ratio Current ratio to 1 to 1 to 1 II / Required 1A Required 1B > 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 1B Required 2A Required 2B Compute the acid-test ratio for each of the three years. Acid-test ratio Numerator: 1 Denominator: = Acid-Test Ratio Acid-test ratio Short-term investments + / = 1 = to 1 Current Year: 1 Year Ago: 2 Years Ago: + 7 = to 1 to 1 Required 1A Required 1B Required 2A Required 2B Did the acid-test ratio improve or worsen over the three-year period? Acid-test ratio