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 $ 32,897 95,345 116,281 10,382 302,666 $ 38,838 68,639 90,701 9,993 272,494 $ 480,665 $ 557,571 Accounts payable $ 138,835 Long-term notes payable. Common stock, $10 par value 105,872 163,500 Retained earnings 149,364 $ 82,857 111,658 162,500 123,650 Total liabilities and equity $557,571 $ 480,665 For both the current year and one year ago, compute the following ratios: Exercise 17-7 (Algo) Analyzing liquidity LO P3 (1-0) Compute the current ratio for each of the three years. (1-b) Did the current ratio improve or worsen over the three-year period? (2-0) 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? $ 39,655 52,339 57,453 4,540 250,613 $ 404,600 $ 52,339 91,205 162,500 98,556 $ 404,600