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, 310 par value Retained earnings Total liabilities and equity $ 31,328 90,799 115,315 9,987 288.920 $ 536,349 $ 37,729 65,379 84,683 9,904 264,675 $ 462,370 $ 38,145 50,861 55,819 4,153 240, 222 $ 389,200 $ 136,222 99,825 163,500 136,802 5 536,349 $ 77,359 105,282 163,500 116,229 $ 462,370 $ 51,374 86,873 163,500 87,453 $ 389,200 For both the current year and one year ago, compute the following ratlos: 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 perlod? 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, 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 acld-test ratlo 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. Current Ratio Numerator. 1 = Current assets Denominator: Current liabilities = = = Current Ratio Current ratio Current Year. Olto 1 1 Year Ago: 2 Years Ago: Ol to 1 111 0 to 1 Recured 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 28 Compute the acid-test ratio for each of the three years. Acid-test ratio Cash Numerator: Short-term investments 2 Denominator Ourrent liabilities 10 Current Year Current receivables Acid-Test Ratio Acid-test ratio Oto 1 1 Year Ago: 2 Years Ago: Oto 1 Oto 1