Simon Companys year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 29,242 $ 33,175 $ 33,551 Accounts receivable, net 84,751 57,470 45,629 Merchandise inventory 103,424 76,718 49,568 Prepaid expenses 9,232 8,621 3,840 Plant assets, net 259,252 242,896 206,312 Total assets $ 485,901 $ 418,880 $ 338,900 Liabilities and Equity Accounts payable $ 124,619 $ 70,791 $ 43,840 Long-term notes payable secured by mortgages on plant assets 92,263 97,306 74,897 Common stock, $10 par value 162,500 162,500 162,500 Retained earnings 106,519 88,283 57,663 Total liabilities and equity $ 485,901 $ 418,880 $ 338,900

(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?