Simon Companys year-end balance sheets follow.

At December 31	Current Yr				1 Yr Ago			2 Yrs Ago
Assets
Cash		$	32,124		$	37,550		$	39,506
Accounts receivable, net			93,106			67,027			51,110
Merchandise inventory			117,063			85,967			56,665
Prepaid expenses			10,345			9,561			4,346
Plant assets, net			291,842			269,274			243,473
Total assets		$	544,480		$	469,379		$	395,100
Liabilities and Equity
Accounts payable		$	134,220		$	79,325		$	53,196
Long-term notes payable secured by mortgages on plant assets			102,362			106,878			87,317
Common stock, $10 par value			162,500			162,500			162,500
Retained earnings			145,398			120,676			92,087
Total liabilities and equity		$	544,480		$	469,379		$	395,100

(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. Choose Numerator: Current Ratio I Choose Denominator: 1 1 Current Ratio Current ratio = = to 1 Current Yr: 1 Yr Ago: 2 Yrs Ago: 11 to 1 11 to 1 Required 1A Required 1B Required 2A Required 2B Compute the acid-test ratio for each of the three years. Acid-test ratio Choose Numerator: I Choose Denominator: 1 + + + = Current Yr: 1 Yr Ago: 2 Yrs Ago: 1 1 Acid-Test Ratio Acid-test ratio 0 to 1 0 to 1 0 to 1 + + 11