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 Accounts payable Current Year 1 Year Ago 2 Years Ago $ 24,735 72,428 93,852 8,048 233,137 $ 432,200 $ 109,770 Long-term notes payable Common stock, $10 par value Total liabilities and equity Retained earnings 82,879 163,500 76,051 $ 432,200 $ 30,105 50,597 66,861 8,059 216,964 $ 372,586 $ 62,337 84,838 163,500 61,911 $ 372,586 For both the current year and one year ago, compute the following ratios: $ 30,136 38,975 43,225 3,281 188,783 $ 304,400 $ 39,377 67,945 162,500 34,578 $ 384,400 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 Ratio