Simon Companys year-end balance sheets follow.

(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 Choose Numerator: I Choose Denominator: Current assets Current liabilities $ 271,648/ s $ 218,8711S $ 162,166 $ Current Yr: 1 Yr Ago: 2 Yrs Ago: 148,256 86,745 55,902 = Current Ratio Current ratio 1.83 to 1 2.52 to 1 2.90 to 1 Required 1A Required 1B > Du 24 New Check my work Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ago 2.14 points $ 34,086 101,815 124,210 11,537 317,864 $ 589,512 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 mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 40,656 $ 41,507 71,859 57,020 95,897 58,934 10,459 4,705 289, 329 261,334 $ 508,200 $ 423,500 eBook Hint Print $ 148,256 $ 86,745 $ 55,902 References 110,828 162,500 167,928 $ 589,512 118,055 90,786 162,500 162,500 140,900 114,312 $ 508,200 $ 423,500 (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. (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 acid-test ratio for each of the three years. Acid-test ratio Choose Numerator: = Acid-Test Ratio Acid-test ratio + Cash $ | + to | Choose Denominator: 1 Current liabilities 1 $ 1 $ 1 $ 1 Current Yr: 1 Yr Ago: 2 Yrs Ago: + 34,086 + 40,656 41,507 + 148,256 86,745 + + to 1 $ + + 55,902 to 1