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 $ 26,878 78,671 96,975 8,484 240,037 $ 451,045 $ 31, 107 54,981 72,653 8,165 221,926 $ 388,832 $ 32,727 44,068 46,012 3,708 200,785 $ 327,300 $ 112,310 83, 101 163,500 92,134 $ 451,045 $ 65,055 90,326 163,500 69,951 $ 388,832 $ 41,907 73,780 163,500 48,113 $ 327,300 For both the current year and one year ago, compute the following ratios: (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 Denominator: Numerator: 1 = Current Ratio Current ratio to 1 = Current Year: 1 Year Ago: 2 Years Ago: = 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 Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2B Compute the acid-test ratio for each of the three years. Acid-test ratio Denominator: Numerator: Short-term investments + 1 1 = Acid-Test Ratio Acid-test ratio = to 1 to 1 + Current Year: 1 Year Ago: 2 Years Ago: + 1 = + + = to 1 Required 1A Required 1B Required 2A Required 2B Did the acid-test ratio improve or worsen over the three-year period? Acid-test ratio