Simon Company's year-end balance sheets follow. Current YE 1 Yr Ago 2 Yrs Ago At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 29,607 84,943 111, 159 9,727 271, 442 $ 506,883 $ 35,307 $ 35,696 61,787 47,595 79,222 49,173 9,452 3,888 251,209 220, 648 $ 436,968 $ 357,000 $ 123,690 $ 73,109 $ 47,595 94,341 162,500 126,352 $ 506,883 99,498 79,686 162,500 162.500 101,861 67,219 $ 436, 968 $ 357,000 (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? 01 E LUSUW. Required 1A Required 18 Required 2A Required 2B Compute the current ratio for each of the three years. Choose Numerator: Current assets Current Ratio Choose Denominator: Current liabilities Current Ratio Current ratio O to 1 Current Yr: 1 $ 197,300 1 Yr Ago: 2 Yrs Ago: 0 101 0 to 1 1 Required 1A Required 1B > Required IA Required 18 Required 2A Required 28 Compute the acid-test ratio for each of the three years. Acid-test ratio Choone Numerator Short-term investments Cash Current receivables Choose Denominator Current liabilities 1 Current Yr: 1 Yr Ago: 2 Yrs Ago: Acid-Test Ratio Acid-test ratio 0 to 1 oto 1 0101 - + . 1