Simon Company's year-end balance sheets follow.

At December 31	Current Year	1 Year Ago	2 Years Ago
Assets
Cash	$ 32,502	$ 37,608	$ 39,171
Accounts receivable, net	97,054	65,142	53,843
Merchandise inventory	123,224	87,855	57,922
Prepaid expenses	10,678	9,872	4,352
Plant assets, net	292,982	279,213	252,612
Total assets	$ 556,440	$ 479,690	$ 407,900
Liabilities and Equity
Accounts payable	$ 142,710	$ 82,689	$ 53,843
Long-term notes payable	102,519	108,122	89,244
Common stock, $10 par value	162,500	163,500	162,500
Retained earnings	148,711	125,379	102,313
Total liabilities and equity	$ 556,440	$ 479,690	$ 407,900

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

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

Compute the current ratio for each of the three years.

Current Ratio
	Numerator:	/	Denominator:	=	Current Ratio
		/		=	Current ratio
Current Year:		/		=	0	to 1
1 Year Ago:		/		=	0	to 1
2 Years Ago:		/		=	0	to 1

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

Compute the acid-test ratio for each of the three years.

Acid-test ratio
	Numerator:					/	Denominator:	=	Acid-Test Ratio
		+	Short-term investments	+		/		=	Acid-test ratio
Current Year:		+		+		/		=	0	to 1
1 Year Ago:		+		+		/		=	0	to 1
2 Years Ago:		+		+		/		=	0	to 1