Simon Company's year-end balance sheets follow. 2 Yrs Ago 1 Yr Ago Current Yr At December 31 Assets 31,638 $ 54,259 74,626 32,627 41,796 45,880 3,447 27,608 $ 76,877 99,618 8,629 Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net 8,471 199,350 226,480 246,018 $ 395,474 $ 323,100 $458,750 Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages Common stock, $10 par value Retained earnings $ 116,513 65,498 $ 43,076 73,547 162,500 43,977 $ 395,474 $ 323,100 91,869 162,500 75,607 plant assets 85,383 162,500 94,354 on 458,750 Total liabilities and equity (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? Compute the current ratio for each of the three years. Current Ratio Current Ratio IChoose Denominator Choose Numerator: Current ratio = 0 to 1 Current Yr 0 to 1 1 Yr Ago: 2 Yrs Ago: 0 to 1 II Did the current ratio improve or worsen over the three year period? Current ratio Acid-test ratio Acid Test Ratio Choose Denominator: Choose Numerator: Acid-test ratio 0 to 1 Current Yr 1 Yr Ago: + 0 to 1 + 0 to 1 2 Yrs Ago: Did the acid-test ratio improve or worsen over the three year period? Acid-test ratio