! 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 $ 35,526 61,543 $ 30,086 91,646 112,990 9,886 275,723 $520,331 $ 128,267 97,822 83,814) 9,137 258,541 $ 448,561 $ 73,533 103,169 163,500 108,359 163,500 130,742 $520,331 $ 448,561 For both the current year and one year ago, compute the following ratios: 2 Years Ago $ 37,006 48,365 53,605 4,030 227,094 $ 370,100 $ 49,342 82,610 163,500 74,648 $ 370,100 Exercise 17-7 (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.