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 Current Year 1 Year Ago 2 Years Ago $31,244 42,492 $ 27,231 75,829 100, 205 8,597 240,633 $ 452,495 Accounts payable $ 110,418 Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity 83,368 162,500 96,209 $ 452,495 $ 30,582 52,973 70,722 8,028 227,777 $ 390,082 $ 67,242 89,719 163,500 69,621 $ 390,082 For both the current year and one year ago, compute the following ratios: 43,919 3,472 194,473 $ 315,600 $ 42,492 69,050 163,500 40,558 $ 315,600 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?