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Required information [The following information applies to the questions displayed below ] Simon Company's year-end balance sheets follow At December 31 Current Year 1 Year

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Required information [The following information applies to the questions displayed below ] Simon Company's year-end balance sheets follow At December 31 Current Year 1 Year Ago 2 Years Ago Assets Cash $ 35, 711 9 41, 334 9 42, 204 Accounts receivable, net 104, 517 72 , 335 $5 . 697 Merchandise inventory 126, 307 97.4 61, 770 Prepaid expenses 11, 049 10, 850 4 , 881 Plant assets, net 315, 826 289, 563 270. 448 Total assets 9 593, 410 $ 511, 560 9 435, 000 Liabilities and Equity Accounts payable $ 149, 237 $ 32, 725 $ 58, 568 Long-term notes payable 111. 561 118. 835 97. 096 Common stock, $10 par value 163, 500 162 , 500 162, 500 Retained earnings 169, 112 145, 500 16, 836 Total liabilities and equity $ 593, 420 3 512, 560 435, 000 a) Compute the current ratio for each of the three years b) Did the current ratio improve or worsen over the three-year period? -a) Compute the acid-test ratio for each of the three years, -b) Did the acid-test ratio improve or worsen over the three-year period

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