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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. $ 25,676 $ 3,941 $ 31,27 242 , 886 221,552 2 , 834 448 , 642 11,595 $ 64,55 $ 43,394 163 , 5 163, s 163, 5 448, 642 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 Current Year 75, 183 96, 458 8, 439 82, 658 91, 889 1 Year Ago 55,229 70,835 8, 203 $ 386,76 88 , 065 71,14 $ 386,760 2 Years Ago 41, 693 44, 851 3, 652 $ 322,3 69, 84 45 , 62 $ 322,3 For both the current year and one year ago, compute the following ratios: Exercise 13-7 (Algo) Analyzing liquidity LO P3 (I-a) Compute the current ratio for each of the three years. (I-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? Required IA Required 1B Required 2A Required 2B Compute the current ratio for each of the three years. Numerator: Current assets Current Year: I Year Ago: 2 Years Ago: 1 Current Ratio Denominator: Current liabilities Required IA Required 1B Required 2A Required 2B Compute the acid-test ratio for each of the three years. Short-term investments Acid-test ratio Current receivables Current Ratio Current ratio Otol Otol Otol Denominator: Current liabilities Current Year: 1 Year Ago: 2 Years Ago: 25,676 30,941 31,270 s 75,183 55,229 41,693 = Acid-Test Ra Acid-test ratio Otol O to 1 O to 1