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 $ 28,929 87,232 103,288 9,316 266,503 94,041 $ 495,268 Accounts payable $ 124,555 Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity $ 33,473 58,578 77,407 8,966 248,531 $ 426,955 $ 72,155 96,236 162,500 96,064 163,500 113,172 $ 495,268 $ 426,955 For both the current year and one year ago, compute the following ratios: $ 37,039 46,965 51,044 4,075 227,677 $ 366,800 $ 47,933 79,442 162,500 76,925 $ 366,800 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: II = Current Ratio Current ratio = to 1 = to 1 = to 1 Required 1A Required 1B > 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. Acid-test ratio Numerator: + Short-term investments + Current Year: + + + + 1 Year Ago: 2 Years Ago: + + < Required 1B I 1 Denominator: = Acid-Test Ratio = Acid-test ratio = to 1 = to 1 = || to 1 Required 2B >