Required information [The following information applies to the questions displayed below. Simon Company's year-end balance sheets follow. Current Year 1 Year Ago 2 Years Ago At December 31 Assets Cash 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 $ 29,113 87,823 110,420 9,567 266,589 $ 503,512 $ 34,030 59,553 79,498 8,933 252,048 $ 434,062 $ 36,175 47,747 52,936 3,979 228,263 $ 369, 100 $ 124, 121 93,714 163,500 122 172 $ 503,512 $ 72,623 97,838 162,500 101, 101 $ 434,062 $ 47,260 82,387 163,500 25.953 $ 369,100 For both the current year and one year ago, compute the following ratios: (1-0) 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? Compute the current ratio for each of the three years. Current Ratio Denominator: Numerator: = Current Ratio Current ratio to 1 Current Year: = 1 Year Ago: 2 Years Ago: to 1 to 1 Did the current ratio improve or worsen over the three-year period? Current ratio Acid-test ratio Denominator Numerator Short-lom investments + Current Year: 1 Year Ago 2 Years Ago: * Acid-Test Ratio Acid lost ratio 101 to 1 to 1 Did the acid-test ratio improve or worsen over the three-year period? Acid-test ratio