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 Current Year 1 Year Ago 2 Years Ago $ 37,800 50,200 $ 31,800 89,500 112,500 10,700 278,500 $ 35,625 62,500 82,500 9,375 255,000 $ 445,000 $ 75,250 101,500 $ 523,000 Liabilities and Equity Accounts payable $ 129,900 Long-term notes payable 98,500 Common stock, $10 par value 163,500 Retained earnings 131,100 104,750 Total liabilities and equity $ 523,000 $445,000 163,500 For both the current year and one year ago, compute the following ratios: 54,000 5,000 230,500 $ 377,500 $ 51,250 83,500 163,500 79,250 $ 377,500 (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 28 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 18 > (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 18 Required 2A Required 28 Did the current ratio improve or worsen over the three-year period? Current ratio 06 (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 18 Required 2A Required 28 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 Complete this question by entering your answers in the tabs below. Required 1A Required 18 Required 2A Required 28 Did the acid-test ratio improve or worsen over the three-year period? Acid-test ratio < Required 2A Required 285