! 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. 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 $ 26,653 75,748 94,296 8,250 233,640 $ 438,587 $ 30,247 51,874 71,346 7,781 216,844 $ 378,092 $ 29,981 39,167 44,307 3,264 189,181 $ 305, 900 $ 111,392 84,928 163,500 78,767 $ 438,587 $ 65, 175 85,222 162,500 65,195 $ 378,092 $ 39,571 66,928 162,500 36,901 $ 305,900 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? 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? Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2B Compute the current ratio for each of the three years. Current Ratio Numerator: / Denominator: II Current Ratio 1 II Current ratio Current Year: 1 II 1 1 Year Ago: 2 Years Ago: to 1 to 1 to 1 = Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2B Did the current ratio improve or worsen over the three-year period? Current ratio Required 1A Required 1B Required 2A Required 2B Did the acid-test ratio improve or worsen over the three-year period? Acid-test ratio