Simon Companys year-end balance sheets follow.

At December 31	Current Yr				1 Yr Ago			2 Yrs Ago
Assets
Cash		$	37,106		$	45,144		$	43,869
Accounts receivable, net			111,934			79,002			59,083
Merchandise inventory			137,976			103,372			64,195
Prepaid expenses			12,315			11,734			4,874
Plant assets, net			342,420			313,982			275,579
Total assets		$	641,751		$	553,234		$	447,600
Liabilities and Equity
Accounts payable		$	156,600		$	94,432		$	57,902
Long-term notes payable secured by mortgages on plant assets			124,269			129,789			100,898
Common stock, $10 par value			162,500			162,500			162,500
Retained earnings			198,382			166,513			126,300
Total liabilities and equity		$	641,751		$	553,234		$	447,600

(1-a) Compute the current ratio for each of the three years. (2-a) Compute the acid-test ratio for each of the three years.

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
	Cash	+	Short-term investments	+	Current receivables	/	Current liabilities	=	Acid-test ratio
Current Yr:		+		+		/		=	0	to 1
1 Yr Ago:		+		+		/		=	0	to 1
2 Yrs Ago:		+		+		/		=	0	to 1