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 $ 28,297 83,653 $ 34,069 59,620 $ 35,868 Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity 100,022 8,930 258,703 76,489 8,596 234,679 $ 413,453 $ 479,605 Accounts payable $ 115,839 Long-term notes payable Common stock, $10 par value Retained earnings 88,362 163,500 111,904 Total liabilities and equity $ 479,605 $ 413,453 $ 70,572 96,045 162,500 84,336 For both the current year and one year ago, compute the following ratios: 47,355 50,438 3,946 217,593 $ 355,200 $ 45,480 77,714 163,500 68,506 $ 355,200 Exercise 13-7 (Algo) Analyzing liquidity LO P3 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 Year: 1 Year Ago: 2 Years Ago: Numerator: Current Ratio Denominator: = Current Ratio = Current ratio = to 1 = to 1 = to 1 Required 1A Required 1B > 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. Current Year: 1 Year Ago: 2 Years Ago: Numerator: + Short-term investments + + + Acid-test ratio Denominator: = Acid-Test Ratio + + = Acid-test ratio = 0 to 1 = 0 to 1 0 to 1 < Required 1B Required 2B >