Simon Company's year-end balance sheets follow. Current Year 1 Year Ago 2 Years 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 Common stock, $10 par value Retained earnings Total liabilities and equity $ 30,198 87,523 112,245 9,628 272,239 $ 511,833 $ 34,946 63,626 80,812 9,266 252,585 $ 441,235 $ 37,516 51,012 54,344 4,210 228,118 $ 375,200 $ 123,623 94,300 163,500 130,410 $ 511,833 $ 73,077 103,514 162,500 102,144 $ 441,235 $ 50,517 84,578 162,500 77,605 $ 375,200 For both the current year and one year ago, compute the following ratios: Exercise 17-7 (Algo) Analyzing liquidity LO P3 (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? Complete this question by entering your answers in the tabs below. Required 1A Required 18 Required 2A Required 28 Compute the acid-test ratio for each of the three years. Numerator: Cash Short-term investments Acid-test ratio Denominator: Current receivables Current liabilities + $ 9,628 $ 123,623 $ 9.266 $ 73,077 $ 239,594 + S 112,245 in Current Year: 1 Year Ago: 2 Years Ago: $ 188,650 + S 80,812 + $ $ $ $ 147,082 + IS 54,344 + s 4,210 X $ 50,517