Required information Use the following information for the Exercises below. (Algo) [The following informaljon 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 $ 43,856 Current Year 1 Year Ago 2 Years Ago $ 34,605 99,273 126,104 11,372 327,146 $ 598,500 $ 40,038 74,400 96,405 10,943 294,162 $ 515,948 Accounts payable $ 146,046 Long-term notes payable Common stock, $10 par value Retained earnings 111,393 163,500 177,561 Total liabilities and equity $ 598,500 $ 515,948 $ 89,811 121,041 162,500 142,596 For both the current year and one year ago, compute the following ratios: 56,181 62,287 4,921 267,055 $ 434,300 $ 56,754 95,020 162,500 120,026 $ 434,300 Prev 1 of 1 Next 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: 1 Denominator: = Current Ratio == Current ratio Current Year: / = to 1 1 Year Ago: 2 Years Ago: = to 1 = to 1 Prev 1 of 1 Next 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 Did the current ratio improve or worsen over the three-year period? Current ratio Required information (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 acid-test ratio for each of the three years. Numerator: + Short-term investments Current Year: + 1 Year Ago: 2 Years Ago: + + Check Acid-test ratio Denominator: Acid-Test Ratio + = Acid-test ratio = to 1 to 1 to 1 Required 18 Required 2B> Prev 1 of 1 Next E (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 acid-test ratio improve or worsen over the three-year period? Acid-test ratio