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 Current Year 1 Year Ago 2 Years Ago $ 29,981 90,441 $ 36,476 62,581 81,042 110,368 9,951 277,785 99,433 9,293 257,613 $ 518,526 $ 447,005 $ 125,248 Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity $ 74,033 100,755 162,500 131,353 162,500 109,717 $ 518,526 $ 447,005 For both the current year and one year ago, compute the following ratios: $ 36,516 49,171 52,377 4,098 223,838 $ 365,200 $ 49,171 83,130 162,580 70,399 $ 365,200 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 acid-test ratio for each of the three years. Cash Current Year: 1 Year Ago: 2 Years Ago: + + Acid-test ratio Numerator: Denominator: Short-term investments + Current receivables Current liabilities < Required 1B Required 2B > Acid-Test Ratio Acid-test ratio 0 to 1 = 0 to 1 0 to 1