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 $ 31,119 90,192 111,176 9,923 274,688 $ 517,098 $ 34,949 $ 35,320 62,408 49,521 80,819 51,183 9,455 3,965 258, 143 227,811 $ 445,774 $ 367,800 $ 126,182 $ 73,829 $ 49,521 96, 242 162,500 132,174 $ 517,098 102,528 82,909 162,500 162,500 106,917 72,870 $ 445,774 $ 367,800 (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 1B Required 2A Required 2B Compute the current ratio for each of the three years. = Current Ratio Choose Numerator: Choose Denominator: Net sales 1 Average accounts receivable, net $ 673,500/ $ 53,2007 1 II Current Yr: 1 Yr Ago: 2 Yrs Ago: Current Ratio Current ratio 0 to 1 0 to 1 0 to 1 = = Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2B Did the current ratio improve or worsen over the three year period? Current ratio (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 acid-test ratio for each of the three years. Acid-test ratio Choose Numerator: I Choose Denominator: + + + 1 Current Yr: 1 Yr Ago: 2 Yrs Ago: = Acid-Test Ratio Acid-test ratio = 0 to 1 0 to 1 0 to 1 + + 1 + + Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2B Did the acid-test ratio improve or worsen over the three year period? Acid-test ratio