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 $ 31,804 91,283 109,145 9,745 281,376 $ 523,353 $ 36,454 $ 36,856 61,900 47,682 81,796 53,388 9,569 4,136 261,447 226,538 $ 451,166 $ 368, 600 $ 126,405 $ 73,960 $ 48,655 96,423 162,500 138,025 $ 523,353 101,693 82,275 162,500 162,500 113,013 75,170 $ 451,166 $ 368,600 (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? Required 1A Required 1B Required 2A Required 2B Compute the current ratio for each of the three years. Current Ratio 1 Choose Denominator: / Current liabilities 11 Choose Numerator: Current assets Current Ratio 11 HI Current ratio 0 to 1 0 to 1 0 to 1 Current Yr: 1 Yr Ago: 2 Yrs Ago: 11 1 11 Required 1A Required 18 Required 2A Required 2B Compute the acid-test ratio for each of the three years. Acid-test ratio Choose Denominator: Choose Numerator = Acid-Test Ratio Acid-test ratio O to 1 O to 1 Current Yr: 1 Yr Ago: 2 Yrs Ago: O to 1