Simon Company's year-end balance sheets follow. At December 31 Current Year 1 Year Ago 2 Years Ago Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity $ 26,064 $ 29,875 $31,748 74,074 51,245 41,916 94,056 70,453 45,984 8,230 226,467 $ 369,734 7,842 3,424 210,319 191,328 $314,400 $ 428,891 $ 107,862 80,632 162,500 77,897 $ 61,235 61,811 $ 428,891 $ 369,734 84,188 162,500 For both the current year and one year ago, compute the following ratios: $ 42,746 68,093 162,500 41,061 $ 314,400 Exercise 13-7 (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? 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 Year: 1 Year Ago: 2 Years Ago: Current Ratio Numerator: 1 Denominator: Current Ratio 1 = Current ratio 1 to 1 to 1 = to 1