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 Common stock, $10 par value Retained earnings Total liabilities and equity Current Year 1 Year Ago 2 Years Ago $ 30,094 86,358 $ 34,132 62,169 $ 35,917 46,932 78,931 52,548 8,960 251,168 4,071 223,332 109,665 9,403 269,498 $505,018 $ 129,522 96,842 163,500 115,154 $ 435,360 $ 74,312 101,134 163,500 96,414 $ 505,018 $ 435,360 For both the current year and one year ago, compute the following ratios: (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? $362,800 $ 49,326 80,981 163,500 68,993 $362,800 Current Year: 1 Year Ago: 2 Years Ago: Current Ratio Numerator: 1 Denominator: = Current Ratio Current ratio = to 1 to 1. to 1 Required 1A Required 1B > 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 Year: 1 Year Ago: 2 Years Ago: Acid-test ratio Denominator: Numerator: Short-term investments + < Required 18 Required 2R Acid-Test Ratio Acid-test ratio to 1 = to 1 to 1 Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 28 Did the acid-test ratio improve or worsen over the three-year period? Acid-test ratio