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 Current Year 1 Year Ago 2 Years Ago $ 36,102 $ 41,373 73,850 95,675 104,636 127,690 11,284 320,194 $ 599,906 110,527 163,500 175,009 18,643 295,619 $ 517,160 $ 84,778 115,378 162,500 154,504 $ 599,906 $ 517,160 $ 41,398 57,451 59,985 4,741 263,125 $ 426,700 $ 56,888 97,130 163,500 109,182 $ 426,700 Accounts payable $ 150,870 Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity For both the current year and one year ago, compute the following ratios: Required 1A Required 18 Required 2A Required 2B Compute the current ratio for each of the three years. Current Year: 1 Year Ago: 2 Years Ago: Numerator: Current Ratio Denominator: Current Ratio = Current ratio = to 1 = to 1 = to 1 Did the current ratio improve or worsen over the three-year period? Current ration Current Year: 1 Year Ago: 2 Years Ago: + ++ + Numerator: Short-term investments + Acid-test ratio 1 Denominator: = Acid-Test Ratio Acid-test ratio to 1 to 1 to 1 Did the acid-test ratio improve or worsen over the three-year period? Acid-test ratio