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 Current Year 1 Year Ago 2 Years Ago $ 32,617 $ 36,631 94,533 118,858 10,092 285,887 $ 541,987 64,758 86,438 9,616 269,787 $ 467,230 Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity For both the current year and one year ago, compute the following ratios: $ 132,256 103,931 162,500 143,300 $ 541,987 $ 77,383 106,388 162,500 120,959 $ 467,230 $ 40,533 54,044 55,289 4,548 246,986 $ 401,400 $ 52,455 87,822 162,500 98,623 $ 401,400 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 Compute the current ratio for each of the three years. Current Year: 1 Year Ago: 2 Years Ago: Numerator: Current assets $ $ $ I 541,987 467,230 / 401,400 / Required 2B Current Ratio Denominator: Current liabilities $ < Required 1A 11 = 11 236,187 = = = Current Ratio Current ratio 2.29 to 1 0 to 1 0 to 1 Required 1B > 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 Did the current ratio improve or worsen over the three-year period? Current ratio < Required 1A Required 2A > Required 1A Required 18 Required 2A Required 28 Compute the acid-test ratio for each of the three years. Current Year: 1 Year Ago: 2 Years Ago: Numerator: +Short-term investments + Acid-test ratio < Required 18 Denominator: Required 2B > W M # Acid-Test Ratio Acid-test ratio 0 to 1 0 to 1 0 to 1 Required 1A Required 1B Required 2A Required 2B Did the acid-test ratio improve or worsen over the three-year period? Acid-test ratio < Required 2A Requ