Simon Company's year-end balance sheets follow. 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 Current Yr 1 Yr Ago 2 Yrs Ago $ 30,310 $ 36,138 $ 35,451 86,968 63,241 47,750 113,764 79,472 50,330 9,468 9,114 3,899 273,213 254,900 227,970 $ 513,723 $442,865 $365,400 $124,080 $ 75,593 $ 49,197 97,546 99,822 83,176 162,500 162,500 162,500 129,597 104,950 70,527 $ 513,723 $442,865 $365,400 (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? Required 1A Required 1B Required 2A Required 2B Compute the current ratio for each of the three years. Current Ratio Choose Numerator: Choose Denominator: = Current assets Current liabilities = Current Yr: $ 240,510/ = 11 1 Yr Ago: $ 187,965/ 2 Yrs Ago: $ 137,420 / 11 I Current Ratio Current ratio 0 to 1 0 to 1 0 to 1 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. Current Yr: 1 Yr Ago: 2 Yrs Ago: Acid-test ratio Choose Numerator: Choose Denominator: Acid-Test Ratio Acid-test ratio 0 to 1 0 to 1 0 to 1 Did the acid-test ratio improve or worsen over the three year period? Acid-test ratio