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. $ 29,864 52,261 69,750 7,918 213,503 $ 29,882 40,249 43,299 3,388 191,182 At December 31 Assets Current Year 1 Year Ago 2 Years Ago Cash Accounts receivable, net Merchandise inventory Prepaid expenses $ 26,315 74,047 94,031 Plant assets, net 8,474 230,156 Total assets Liabilities and Equity $ 433,023 $ 373,296 Accounts payable $ 106,744 Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity $ 433,023 $ 373,296 83,036 163,500 79,743 $ 64,980 84,999 163,500 59,817 For both the current year and one year ago, compute the following ratios: $ 308,000 $ 40,656 66,707 163,500 37,137 $ 308,000 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?