Required information [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. 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 Current Year 1 Year Ago 2 Years Ago $ 25,062 71,185 90,415 7,829 230,294 $ 29,003 51,780 66,391 7,536 211,484 $ 366,194 $ 424,785 $ 107,887 78,262 163,500 75,136 $ 424,785 $ 366,194 $ 63,125 81,698 162,500 58,871 For both the current year and one year ago, compute the following ratios: $ 30,211 41,112 43,780 3,564 195,933 $ 314,600 $ 42,358 68,136 163,500 40,606 $ 314,600 (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. es Required 1A Required 1B Required 2A Required 2B Compute the current ratio for each of the three years. Current Year: 1 Year Ago: 2 Years Ago: Numerator: Current Ratio + Denominator: Current Ratio = Current ratio = to 1 to 1 to 1 Required 1A Required 1B > Required 1A Required 18 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 Denominator: Acid-Test Ratio Acid-test ratio + + to 1 to 1 + to 1