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 $ 28,846 84,468 106,202 9,290 275,237 $ 504,043 $ 33,719 60,224 81,994 9,399 249,184 $ 434,520 $ 34,794 47,797 49,402 3,944 219,063 $ 355,000 $ 128,017 95,708 162,500 117,818 $ 504,843 $ 74,168 101,938 162,500 95,914 $ 434,520 $ 48,266 78,455 162,500 65,779 $ 355,000 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? 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. Current Ratio Denominator: Numerator: 1 1 11 1 11 Current Year: 1 Year Ago: 2 Years Ago: Current Ratio Current ratio to 1 to 1 to 1 11 11 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 Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2B Compute the acid-test ratio for each of the three years. Acid-test ratio Denominator: = Acid-Test Ratio Numerator: Short-term investments + + Acid-test ratio to 1 Current Year: + + 1 + + 7 to 1 1 Year Ago: 2 Years Ago: = to 1 Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2B Did the acid-test ratio improve or worsen over the three-year period? Acid-test ratio