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 50,200 54,000 Current Year 1 Year Ago 2 Years Ago $ 31,800 89,500 112,500 10,700 278,500 $ 523,000 $ 35,625 62,500 $ 37,800 82,500 9,375 255,000 $ 445,000 $ 75,250 101,500 163,500 104,750 Long-term notes payable Common stock, $10 par value $ 129,900 98,500 163,500 131,100 Total liabilities and equity $ 523,000 $ 445,000 Retained earnings For both the current year and one year ago, compute the following ratios: 5,000 230,500 $ 377,500 $ 51,250 83,500 163,500 79,250 $ 377,500 (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?