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 $ 28,698 79,914 103,552 8,789 255,916 $ 476,869 $ 33,216 56,978 73,771 8,719 238,410 $ 411,094 $ 32,927 43,025 47,229 3,622 205,797 $ 332,600 $ 115, 178 88, 755 163,500 109,436 $ 476,869 $ 70,170 96,443 163,500 80,981 $ 411,094 $ 44,342 75, 710 162,500 50,048 $ 332,600 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: Current Ratio Current ratio = Current Year: 1 to 1 1 = to 1 1 Year Ago: 2 Years Ago: to 1 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. Acid-test ratio Numerator: Denominator: II Acid-Te + Short-term investments + / II Acid-te Current Year: + + 1 = 1 + / = 1 1 Year Ago: 2 Years Ago: + + + = 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