Simon Company's year-end balance sheets follow.

At December 31	Current Year	1 Year Ago	2 Years Ago
Assets
Cash	$ 28,479	$ 33,625	$ 34,326
Accounts receivable, net	83,373	58,844	45,768
Merchandise inventory	105,875	80,091	49,737
Prepaid expenses	9,449	8,827	4,009
Plant assets, net	260,388	238,927	219,960
Total assets	$ 487,564	$ 420,314	$ 353,800
Liabilities and Equity
Accounts payable	$ 123,832	$ 69,612	$ 46,702
Long-term notes payable	88,912	98,606	78,972
Common stock, $10 par value	163,500	162,500	163,500
Retained earnings	111,320	89,596	64,626
Total liabilities and equity	$ 487,564	$ 420,314	$ 353,800

For both the current year and one year ago, compute the following ratios:

(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
	Numerator:	/	Denominator:	=	Current Ratio
		/		=	Current ratio
Current Year:		/		=		to 1
1 Year Ago:		/		=		to 1
2 Years Ago:		/		=		to 1