! Required information Use the following information for the Exercises below. (Algo) [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 Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity Current Year 1 Year Ago 2 Years Ago $ 33,856 $ 29,259 85,659 105,546 9,613 270,853 60,457 79,091 9,341 249,091 $ 431,836 $ 500,930 $ 122,237 $ 72,980 92,291 162,500 123,902 99,322 162,500 97,034 $ 500,930 $ 431,836 For both the current year and one year ago, compute the following ratios: $ 34,568 45,621 50,595 3,802 221,714 $ 356,300 $ 46,091 77,955 163,500 68,754 $ 356,300 Exercise 13-7 (Algo) Analyzing liquidity LO P3 (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?