Simon Companys year-end balance sheets follow.

At December 31	Current Yr				1 Yr Ago			2 Yrs Ago
Assets
Cash		$	34,975		$	42,534		$	42,585
Accounts receivable, net			100,343			72,989			55,633
Merchandise inventory			126,162			97,404			61,699
Prepaid expenses			11,491			10,948			4,827
Plant assets, net			325,805			292,311			269,756
Total assets		$	598,776		$	516,186		$	434,500
Liabilities and Equity
Accounts payable		$	150,586		$	86,363		$	55,633
Long-term notes payable secured by mortgages on plant assets			112,570			116,348			96,985
Common stock, $10 par value			162,500			162,500			162,500
Retained earnings			173,120			150,975			119,382
Total liabilities and equity		$	598,776		$	516,186		$	434,500

(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?

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
	Choose Numerator:	/	Choose Denominator:	=	Current Ratio
	Current assets	/	Current liabilities	=	Current ratio
Current Yr:		/		=	0	to 1
1 Yr Ago:		/		=	0	to 1
2 Yrs Ago:		/		=	0	to 1

Compute the acid-test ratio for each of the three years.

Acid-test ratio
	Choose Numerator:					/	Choose Denominator:	=	Acid-Test Ratio
		+		+		/		=	Acid-test ratio
Current Yr:		+		+		/		=	0	to 1
1 Yr Ago:		+		+		/		=	0	to 1
2 Yrs Ago:		+		+		/		=	0	to 1