Simon Company's yearend balance sheets foilow. t Decener 31- acuprent Year-I. :1' fV'iiealt- ago .2 Yeacsugo Assets Cash 5 29,408 $ 35,439 $ 36,191 Accounts receivable, net 32, 870 61,397 42,282 Merchandise inventory 187,165 29,493 49,375 Prepaid expenses 9,959 9,218 3,864- Plant assets, net 279,457 257,443 228,688 Total assets 5 513.359 $ 44ng32 5 353.439 Liabilities and Equity Accounts payable 5 129,230 $ 74,115 5 42,282 Longterm notes payable 99,504 104,942 78,414 Common stock, 510 par value 162,500 163,500 162,500 Retained earnings 122,625 100,425 69,204 Total liabilities and equity 5 5135559 $ 442:932 3 3531490 For both the current year and one year ago, compute the foilowing ratios: (1a) Compute the current ratio for each of the three years. (1-b] Did the current ratio improve or worsen over the threeyear period? {Z-a) Compute the acidtest ratio for each of the three years. {2-b] Did the acidtest ratio improve or worsen over the threeyear period? \"Complete thisquestion by enherirlg your anmer'gj. ir'l tI'IetaIisbelnw. Required in Required 15 Required 2A H Required 25 Comp ute the current ratio for each of the three years. 2 Years Ago: _I _I _I _I = Current ratio m1 to1 to1 Required 1A Required 1B Required 2A Required 2B Compute the acid-test ratio for each of the three years. Acid-test ratio Numerator: Denominator: = Acid-Test Ratio + Short-term investments + = Acid-test ratio Current Year: to 1 1 Year Ago: to 1 2 Years Ago: to 1