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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

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?image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

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 mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 32,563 92,545 115, 206 10,079 285,449 $ 535, 842 $ 37,324 $ 38,109 64,671 50,294 83, 748 55, 220 9,5074 ,321 2 66,683 244,856 $ 461,933 $ 392,800 $ 134,759 $ 79,628 $ 52,887 103,760 162,500 134,823 $ 535,842 22 108,369 87,677 162,500 162,500 111,436 89,736 $ 461,933 $ 392,800 (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 I Choose Denominator: Choose Numerator: = = Current Ratio Current ratio to 1 to 1 Current Yr: 1 Yr Ago: 2 Yrs Ago: 11 to 1 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 Compute the acid-test ratio for each of the three years. Acid-test ratio Choose Numerator: 1 Choose Denominator: Acid-Test Ratio Acid-test ratio + + + + Current Yr: 1 Yr Ago: 2 Yrs Ago: to 1 to 1 + + + to 1 + Did the acid-test ratio improve or worsen over the three year period? Acid-test ratio

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