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. Current Year 1 Year Ago 2 Years Ago 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 $ 34,300 104,538 124,993 11,274 324,239 $ 599,344 $ 40,921 71,611 95,585 10,850 297, 709 $ 516,676 $ 42,626 55,146 61,745 4,736 262,047 $426,300 $ 149,237 110,423 162,500 177, 184 $ 599,344 $ 89,938 115,270 163,500 147,968 $ 516,676 I 55,709 96,097 163,500 110,994 $ 426,300 For both the current year and one year ago, compute the following ratios: 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? (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 2B Compute the current ratio for each of the three years. II Numerator: Current assets Current Ratio 1 Denominator: 1 Current liabilities 1 II = Current Year: 1 Year Ago: 2 Years Ago: Current Ratio Current ratio 0 to 1 0 to 1 oto 1 Il 11 kercise 13-7 (Algo) Analyzing liquidity LO P3 -a) Compute the current ratio for each of the three years. -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 2B Compute the acid-test ratio for each of the three years. Acid-test ratio Denominator Numerator: Short-term investments Current Year: 1 Year Ago: 2 Years Ago: Acid-Test Ratio Acld.tost ratio olto 1 oto 1 oto 1 -