Required Information Use the following Information for the Exercises below. (Algo) [The following information appiles 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 Accounts payable Long-term notes payable Connon stock, $10 par value Retained earnings Total liabilities and equity Current Year 1 Year Ago 2 Years Ago $ 34,019 58,950 $ 28,247 81,870 106,ess 9,372 258,063 $ 483,607 $121,622) 91,827 75,585 8,843 239,506 $ 416,903 $ 71,866 95,888 $ 34,061 44,078 49,333 3,636 206,192 $ 337,300 $43,633 76,034 163,500 54,133 163,500 163,500 106,658 85,649 $ 483,607 $416,903 $ 337,300 For both the current year and one year ago, compute the following ratios: Exercise 13-7 (Algo) Analyzing liquidity LO P3 (1-6) Compute the current ratio for each of the three years (1-b) Did the current ratio improve or worsen over the three-year period? (2-6) 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 current ratio for each of the three years. Numerator: Current Year: Current Ratio Denominator: Current Ratio Current ratio to 1 C Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable. Common stock, $10 par value Retained earnings Total liabilities and equity 81,870 58,950 106,055 75,585 44,078 49,333 9,372 258,063 $ 483,607 8,843 239,506 $416,903 3,636 206,192 $337,300 $121,622 91,827 $ 71,866 95,888 $43,633 163,500 163,500 76,034 163,500 106,658 85,649 54,133 $ 483,607 $416,903 $337,300 For both the current year and one year ago, compute the following ratios Exercise 13-7 (Algo) Analyzing liquidity LO P3 (1-6) 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 18 Required 2A Required 28 Compute the current ratio for each of the three years. Numerator: Current Year: 1 Year Ago 2 Years Ago: Accounts receivable- Cost of goods sold Current assets Current liabilities Current Ratio Denominator: Current Ratio Current ratio 0 to 1 0 to 1 to 1 Required 18 > Son Compunya yeuren UILE OFEEL I 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 $ 28,247 81,870 $ 34,019 58,950 106,055 75,585 $ 34,061 44,078 49,333 9,372 258,063 8,843 239,506 $ 416,903 $ 483,607 Accounts payable $ 121,622 Long-term notes payable Common stock, $10 par value Retained earnings 91,827 163,500 106,658 Total liabilities and equity $ 483,607 $ 71,866 95,888 163,500 85,649 $ 416,903 For both the current year and one year ago, compute the following ratios Exercise 13-7 (Algo) Analyzing liquidity LO P3 (1-e) 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 18 Required 2A Required 28 Did the current ratio improve or worsen over the three-year period? 3,636 286,192 $337,300 $ 43,633 76,034 163,500 54,133 $ 337,300 Current ratio: Improved Worsened Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity 9,372 258,063 $ 483,607 81,870 58,950 44,078 106,055 75,585 49,333 8,843 3,636 239,506 $416,903 206,192 $337,300 $121,622 91,027 $ 71,866 95,888 $43,633 76,034 163,500 106,658 $5,649 $ 483,607 $416,903 163,500 For both the current year and one year ago, compute the following ratios: Exercise 13-7 (Algo) Analyzing liquidity LO P3 (1-e) Compute the current ratio for each of the three years. (1-b) Did the current ratio improve or worsen over the three-year period? (2-6) 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, 163,500 54,133 $ 337,300 Current Year: 1 Year Ago: Cash 2 Years Ago Cost of goods sold Current assets Current liabilities Net sales Acid test ratio Numerator: Short-term investments Denominator: Acid-Test Ratio Acid-lest ratio to 1 to 1 to 1 Jan Sompany yourein wUNTIVE STEEL W At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity Current Year 1 Year Ago 2 Years Ago $ 28,247 01,870 106,055 $ 34,019 58,950 9,372 258,063 $ 483,607 $121,622 91,827 75,585 8,843 239,506 $416,903 $ 71,066 95,808 $ 34,061 44,078 49,333 3,636 206,192 $ 337,300 $43,633 76,014 163,500 163,500 163,500 106,658 85,649 54,133 $ 483,607 $416,903 $337,300 For both the current year and one year ago, compute the following ratios Exercise 13-7 (Algo) Analyzing liquidity LO P3 (1-e) Compute the current ratio for each of the three years. (1-b) Did the current ratio improve or worsen over the three-year period? (2-6) 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 24 Required 28 Did the acid-test ratio improve or worsen over the three-year penod? Acid-test ratio: