Required information [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Assets Current Year 1 Year Ago 2 Years Ago Cash Accounts receivable, net $ 31,800 89,500 $ 35,625 62,500 $ 37,800 Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable 112,500 10,700 278,500 82,500 9,375 255,000 $ 523,000 $ 445,000 $ 75,250 101,500 163,500 104,750 $ 129,900 Long-term notes payable Common stock, $10 par value 98,500 163,500 131,100 Total liabilities and equity $ 523,000 $ 445,000 Retained earnings For both the current year and one year ago, compute the following ratios: 50,200 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 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 > Complete this question by entering your answers in the tabs below. 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 2A > (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 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 < Required 1B Required 2B > 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 < Required 2A Required 2B >