Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ago $ 32,079 91,133 115,740 10, 126 289, 249 $ 538,327 $ 37,869 $ 39,044 66,270 49,532 88,429 53,284 9,551 4,296 261,956 236, 744 $ 464,075 $ 382,900 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 $ 131,363 $ 79,997 $ 52,059 101,205 162,500 143,259 $ 538,327 104,603 85,467 162,500 162,500 116,975 82,874 $ 464,075 $ 382,900 (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? Compute the current ratio for each of the three years. 11 Current Ratio Choose Numerator: 7 Choose Denominator: 1 Current Ratio Current ratio 11 Il 1 to 1 Current Yr: = / 1 Yr Ago: 2 Yrs Ago: to 1 to 1 11 1 Compute the acid-test ratio for each of the three years. Acid-test ratio Choose Numerator: Choose Denominator Acid-Test Ratio Acid-test ratio 10 1 1 1 to 1 +-+-+ + Current Yr: 1 Yr Ago: 2 Yrs Ago: 1 to 1 +