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 $ 41,079 53,698 Current Year 1 Year Ago 2 Years Ago $ 41,029 71,801 92,089 10,664 287,222 $ 34,068 102,729 126,654 11,193 308,610 $ 502,805 $ 583,254 Accounts payable $ 148,135 Long-term notes payable $ 85,824 113,332 Common stock, $10 par value Retained earnings Total liabilities and equity 111,845 162,500 160,774 162,500 141,149 $ 583,254 $ 502,805 For both the current year and one year ago, compute the following ratios: 58,343 4,385 249,295 $ 406,800 $ 54,772 91,701 163,500 96,827 $ 406,800 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. (2-b) Did the acid-test ratio improve or worsen over the three-year period? Required information (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: = Current Ratio Current assets Current liabilities = Current ratio Current Year: = 0 to 1 es 1 Year Ago: 2 Years Ago: = 0 to 1 0 to 1 (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 Did the current ratio improve or worsen over the three-year period? Current ratio Required information (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. Cash Current Year: 1 Year Ago: 2 Years Ago: Denominator: Acid-Test Ratio Acid-test ratio Numerator: Short-term investments Current receivables Current liabilities Acid-test ratio 0 to 1 0 to 1 0 to 1 2 of 5 ipped (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. Book Required 1A Required 1B Required 2A Required 2B Hint Did the acid-test ratio improve or worsen over the three-year period? Ask Acid-test ratio Print ferences < Required 2A Required 28>