Save Exercise 13-7 Analyzing liquidity LO P3 Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs 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 secured by norticages on plant assets Common stock, $10 pae value Retained earnings Total liabilities and equity $ 34,622 100,344 121.167 11,370 313,496 $589,999 $ 40,870 $ 41,738 68,718 56,208 91,733 61,065 10,413 4,684 289,127 257,905 $ see,861 5 421,600 $ 146, 115 $ 84,646 $ 56,764 189,228 162,500 163, 156 $589,999 116,350 92,242 162,500 162,500 137,365 119,094 $ 500,861 $ 421,600 (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 18 Required 2A Required 28 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. Choose Numerator: Current Ratio Choose Denominator: Current Ratio Current ratio to 1 Current Yr: 1 Yr Ago: 2 Yrs Ago: to 1 to 1 Flequired 1 Required 1B > 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 (1-6) 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. (2-6) 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 1 Required 18 Required 2A Required 28 Compute the acid-test ratio for each of the three years Acidentatio Choose Numerator Choose Denominator Acid-Test Ratio Acid-test ratio 101 tot Current Yr 1 Yr Ago: 2 Yrs Ago 4 . tot (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 18 Required 2A Required 28 Did the add-test ratio improve or worsen over the three year period? Acid-test ratio Required 2A Rod 20