Simon Companys year-end balance sheets follow.

At December 31

Current Yr

1 Yr Ago

2 Yrs Ago

Assets

Cash

$

29,647

$

35,715

$

35,744

Accounts receivable, net

89,432

61,882

48,140

Merchandise inventory			106,932			84,226			50,752
Prepaid expenses			9,450			9,282			3,931
Plant assets, net			277,278			250,911			226,133

Total assets		$	512,739		$	442,016		$	364,700	Liabilities and Equity
Accounts payable		$	125,119		$	74,701		$	48,622

Long-term notes payable secured by mortgages on plant assets			96,395			100,647			81,405
Common stock, $10 par value			162,500			162,500			162,500
Retained earnings			128,725			104,168			72,173 Total liabilities and equity $512,739 $442,016 $364,700

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?