Question
Simon Company's year-end balance sheets follow. At December 31 Current Year 1 Year Ago 2 Years Ago Assets Cash $ 27,761 $ 31,807 $ 34,485
Simon Company's year-end balance sheets follow. At December 31 Current Year 1 Year Ago 2 Years Ago Assets Cash $ 27,761 $ 31,807 $ 34,485 Accounts receivable, net 80,459 56,787 44,627 Merchandise inventory 100,160 75,040 48,493 Prepaid expenses 8,851 8,518 3,757 Plant assets, net 248,630 229,452 210,138 Total assets $ 465,861 $ 401,604 $ 341,500 Liabilities and Equity Accounts payable $ 118,319 $ 65,835 $ 45,078 Long-term notes payable 90,209 92,369 73,962 Common stock, $10 par value 163,500. (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?
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