Simon Company's year-end balance sheets follow. Current Yr 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 $ 24,823 71,944 88,647 7,994 227,319 $ 420,727 $ 29,306 $ 30,527 51,285 39,897 66,428 42,486 7,464 3,325 208,213 189, 065 $ 362,696 $ 305,300 $ 103,713 $ 60,070 $ 41,106 78,306 162,500 76,208 $ 420,727 84,254 67,471 162,500 162,500 55,872 34,223 $362,696 $ 305,300 (1-a) Compute the current ratio for each of the three years. (1-6) 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 1B Required 2A Required 2B Compute the current ratio for each of the three years. Current Ratio 1 Choose Denominator: Choose Numerator: = = / II Current Yr: 1 Yr Ago: 2 Yrs Ago: Current Ratio Current ratio to 1 to 1 to 1 / Required 1A Required 1B Required 2A Required 2B Did the current ratio improve or worsen over the three year period? Current ratio Required 1A Required 1B Required 24 Required 2B Compute the acid-test ratio for each of the three years. Acid-test ratio Choose Numerator: I Choose Denominator: + = Acid-Test Ratio Acid-test ratio to 1 1 Current Yr: 1 Yr Ago: 2 Yrs Ago: + + = = = = to 1 + + / to 1 Required 1A Required 1B Required 2A Required 2B Did the acid-test ratio improve or worsen over the three year period? Acid-test ratio