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 Current Year 1 Year Ago 2 Years Ago $ 30,839 $ 35,327 89,381 111,256 9,832 281,388 $ 36,803 63,084 83,361 9,746 259,082 $ 450,600 51,053 54,921 4,007 228,716 $ 375,500 Liabilities and Equity Accounts payable Long-term notes payable Retained earnings. Common stock, $10 par value Total liabilities and equity $ 522,696 $ 131,453 $ 74,628 $ 49,566 96,302 163,500 102,602 163,500 82,156 162,500 131,441 109,870 81,278 $ 522,696 $ 450,600 $ 375,500 For both the current year and one year ago, compute the following ratios: 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 2B Compute the current ratio for each of the three years. Current Ratio Numerator: Denominator: Current assets Current liabilities Current Year: 1 1 Year Ago: 2 Years Ago: Current Ratio Current ratio = 0 to 1 = 0 to 1 = 0 to 1 Required 1A Required 1B > (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 18 Required 2A Required 2B Compute the acid-test ratio for each of the three years. Current Year: 1 Year Ago: 2 Years Ago: Numerator Short-term investments Acid test ratio Denominator: Acid-Test Ratio Acid-test ratio 0 to 1 0 to 1 0 to 1