Simon Companys year-end balance sheets follow.

At December 31	Current Yr				1 Yr Ago			2 Yrs Ago
Assets
Cash		$	26,484		$	30,957		$	33,909
Accounts receivable, net			78,340			55,850			42,996
Merchandise inventory			101,483			72,326			46,730
Prepaid expenses			8,792			8,461			3,731
Plant assets, net			247,660			231,336			208,434
Total assets		$	462,759		$	398,930		$	335,800

Liabilities and Equity
Accounts payable		$	114,075		$	68,093		$	44,769
Long-term notes payable secured by mortgages on plant assets			87,869			93,589			75,696
Common stock, $10 par value			162,500			162,500			162,500
Retained earnings			98,315			74,748			52,835
Total liabilities and equity		$	462,759		$	398,930		$	335,800

(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?

Current Ratio
	Choose Numerator:	/	Choose Denominator:	=	Current Ratio
	Current assets	/	Total assets	=	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
	not attempted	+	not attempted	+	not attempted	/	not attempted	=	Acid-test ratio
Current Yr:	not attempted	+	not attempted	+	not attempted	/	not attempted	=	0	to 1
1 Yr Ago:	not attempted	+	not attempted	+	not attempted	/	not attempted	=	0	to 1
2 Yrs Ago:	not attempted	+	not attempted	+	not attempted	/	not attempted	=	0	to 1