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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
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 $ 134,010 Retained earnings Total liabilities and equity $ 32,068 $ 36,382 $ 37,526 91,120 63,025 48,549 115,712 84,133 53,293 10,023 9,454 4,128 283,943 266,373 231,804 $532,866 $459,367 $ 375,300 $ 79,186 $ 51,026 97,173 162,500 139,183 $532,866 102,485 162,500 115,196 85,430 162,500 76,344 $459,367 $ 375,300 (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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