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Use the following information for the Exercises below. $($Algo$)$

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Simon Company's year$-$end balance sheets follow.

At December $31$ Current Year $1$ Year Ago $2$ Years Ago

Assets

Cash $ $25,509$ $ $29,818$ $ $31,057$

Accounts receivable, net $73,19350,61542,229$

Merchandise inventory $93,88668,95344,105$

Prepaid expenses $8,2157,8273,382$

Plant assets, net $231,552215,507189,827$

Total assets $ $432,355$ $ $372,720$ $ $310,600$

Liabilities and Equity

Accounts payable $ $106,580$ $ $64,249$ $ $41,819$

Long$-$term notes payable $81,28384,86870,015$

Common stock, $$10$ par value $162,500162,500163,500$

Retained earnings $81,99261,10335,266$

Total liabilities and equity $ $432,355$ $ $372,720$ $ $310,600$

For both the current year and one year ago, compute the following ratios:

Exercise $17-7($Algo$)$ Analyzing liquidity LO P$3$

$(1-$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?