Required information [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. 78,640 $ 33,717 44,516 45,991 At December 31 Current Year 1 Year Ago 2 Years Ago Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable $ 28,528 79,407 104,986 8,914 256,897 $ 478,732 $ 33,676 56,622 $ 116,820 Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity 88,202 8,407 235,355 $ 412,700 $ 71,141 94,921 163,500 83,138 162,500 111,210 $ 478,732 $ 412,700 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? 3,673 206,003 $ 333,900 $ 44,956 75,268 163,500 50,176 $ 333,900 S Current Year: 1 Year Ago: 2 Years Ago: Numerator: Current Ratio Denominator: = = Current Ratio Current ratio = 0 to 1 = 0 to 1 0 to 1 Required 1A Required 1B > Current Year: 1 Year Ago: 2 Years Ago: Numerator: Short-term investments Acid-test ratio Denominator: Acid-Test Ratio = Acid-test ratio. 0 to 1 0 to 11 0 to 1