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 $ 24,298 69,718 89,427 7,825 220,555 $ 28,118 49,206 65,022 7,306 205,368 $ 355,020 $ 58,798 $ 411,823 $ 101,518 Long-term notes payable 75,100 Common stock, $10 par value 162,500 Retained earnings 72,705 Total liabilities and equity $ 411,823 $ 355,020 80,022 163,500 52,700 For both the current year and one year ago, compute the following ratios: $ 30,799 40,260 43,310 3,321 187,310 $ 305,000 $ 40,663 68,079 162,500 33,758 $ 305,000 Exercise 13-7 (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?