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 Current Year 1 Year Ago 2 Years Ago $ 25,264 74,688 $ 29,236 $ 32,008 Accounts payable Long-term notes payable Common stock, $10 par value Total liabilities and equity Retained earnings 93,906 7,973 226,378 $428,209 $ 108,757 80,503 163,500 75,449 51,164 68,292 7,752 212,702 $ 369,146 $ 63,633 86,602 162,500 56,411 $ 428,209 $ 369,146 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? 42,263 44,128 3,349 192,152 $ 313,900 $ 40,192 69,372 162,500 41,836 $ 313,900