Simon Company's year-end balance sheets follow. At December 31 Assets Current Year 1 Year Ago 2 Years Ago Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable $ 38,336 106,794 135,630 12,226 337,850 $ 630,836 $ 157,078 Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity 115,039 163,500 195,219 $ 42,201 74,613 99,601 11,763 315,646 $ 543,824 $ 90,987 123,829 163,500 165,508 $ 630,836 $ 543,824 For both the current year and one year ago, compute the following ratios: $ 43,977 60,413 63,078 4,936 276,296 $ 448,700 $ 60,413 99,163 162,500 126,624 $ 448,700 Exercise 13-7 (Algo) Analyzing liquidity LO P3 (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? (2-0) 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. int Required 1A Required 1B Required 2A Required 2B D erences Compute the current ratio for each of the three years. Current Year: 1 Year Ago: 2 Years Ago: Numerator: Current Ratio Denominator: Current Ratio Current ratio to 1 to 1 to 1 Required 1A Required 18 > Exercise 13-7 (Algo) Analyzing liquidity LO P3 (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. nces Required 1A Required 18 Required 2A Required 2B Did the current ratio improve or worsen over the three-year period? Current ratio bok Him Pin Exercise 13-7 (Algo) Analyzing liquidity LO P3 (1-0) 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 28 Compute the acid-test ratio for each of the three years. eferences Acid-testratio Numerator: Denominator: -Acid Test Ratio Short torm investments Acid-tost ratio Current Year: 1 Year Ago 2 Years Ago: to 1 to 1 to 1 (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 Did the acid-test ratio improve or worsen over the three-year period? Acid-test ratio < Required 2A Required 2B