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 $ 27,568 79,108 $ 31,586 $ 34,231 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 102,448 8,702 244,796 $ 462,622 $ 398,812 54,717 74,518 8,208 229,783 42,983 47,669 3,730 207,087 $ 335,700 $117,497 88,712 $ 66,051 93,561 $ 44,312 162,500 162,500 93,913 76,700 $ 462,622 $ 398,812 For both the current year and one year ago, compute the following ratios: 75,673 163,500 52,215 $ 335,700 (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