Simon Company's year-end balance sheets follow.

At December 31	Current Year	1 Year Ago	2 Years Ago
Assets
Cash	$ 32,979	$ 39,718	$ 39,376
Accounts receivable, net	96,549	70,187	53,021
Merchandise inventory	125,034	89,146	55,360
Prepaid expenses	10,835	10,119	4,462
Plant assets, net	299,218	277,567	241,581
Total assets	$ 564,615	$ 486,737	$ 393,800
Liabilities and Equity
Accounts payable	$ 143,401	$ 82,259	$ 51,462
Long-term notes payable	105,086	115,308	87,030
Common stock, $10 par value	162,500	162,500	162,500
Retained earnings	153,628	126,670	92,808
Total liabilities and equity	$ 564,615	$ 486,737	$ 393,800

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

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?