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 $ 26,692 76,579 98,249 8,682 246,770 $ 456,972 $ 31,200 56,255 75,065 8,438 222,983 $ 393,941 $ 33,485 42,896 48,500 3,721 202,998 $ 331,600 $ 110,372 84,193 163,500 98,907 $ 456,972 $ 67,242 88,794 163,500 74,405 $ 393,941 $ 43,333 72,551 162,500 53,216 $ 331,600 For both the current year and one year ago, compute the following ratios: Compute the current ratio for each of the three years. Current Ratio Numerator: 1 Denominator: Current Ratio II II / = Current ratio 1 to 1 Current Year: 1 Year Ago: 2 Years Ago: / to 1 II = to 1 Did the current ratio improve or worsen over the three-year period? Current ratio Compute the acid-test ratio for each of the three years. Acid-test ratio Numerator: 1 Denominator: = Acid-Test Ratio Acid-test ratio + Short-term investments + / = Current Year: + + 1 to 1 + + / to 1 1 Year Ago: 2 Years Ago: + + / to 1 Did the acid-test ratio improve or worsen over the three-year period? Acid-test ratio