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 Total assets Plant assets, net Liabilities and Equity Accounts payable Long-term notes payable. Retained earnings Total liabilities and equity Common stock, $10 par value Current Year 1 Year Ago 2 Years Ago $ 33,088 94,968 119,404 10,449 286,571 $ 544,480 $ 136,931 103,386 163,500 140,663 $ 37,926 67,027 88,572 9,660 266,194 $ 469,379 $ 81,705 111,196 163,500 112,978 $ 544,480 $469,379 For both the current year and one year ago, compute the following ratios: 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? $ 39,115 51,632 55,543 4,390 244,420 $ 395,100 $ 53,718 88,190 163,500 89,692 $ 395,100 Required 1A Required 1B Required 2A Required 2B Compute the current ratio for each of the three years. Current Year: ces 1 Year Ago: 2 Years Ago: Numerator: Current Ratio Denominator: Current Ratio Current ratio to 1 " to 1 to 1 Required (A Required 1B > Required information (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 18 Required 2A Required 28 Compute the acid-test ratio for each of the three years. Current Year: 1 Year Ago: + Numerator: +Short-term investments 2 Years Ago: 4 Acid-test ratio Denominator: Acid-Test Ratio Acid-test ratio to 1 to 1 + to 1