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 $ 26,140 74,998 $ 31,790 52,392 $ 31,205 41,606 Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity 69,946 8,183 223,494 $ 385,805 $ 65,201 91,397 163,500 65,707 For both the current year and one year ago, compute the following ratios: 46,101 3,398 192,890 $ 315,200 $ 42,855 69,659 163,500 39,186 $ 315,200 95,258 8,418 242,720 $ 447,534 $ 112,550 83,295 163,500 88,189 $ 447,534 $ 385,805 Exercise 17-7 (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. Required 1A Required 1B Required 2A Required 2B 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 = 0 to 1 = 0 to 1 = 0 to 1