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 $ 31,800 89,500 112,500 10,700 278,500 $ 523,000 $ 35,625 $ 37,800 62,500 50,200 82,500 54,000 5,000 255,000 230,500 $ 445,000 $ 377,500 $ 129,900 $ 75,250 $ 51,250 98,500 163,500 131,100 $ 523,000 101,500 83,500 163,500 163,500 104,750 79,250 $ 445,000 $ 377,500 Compute the current ratio for each of the three years. Choose Numerator: Current Ratio 1 Choose Denominator: Current liabilities = Current Yr: 1 Yr Ago: 2 Yrs Ago: Current Ratio Current ratio to 1 0.00 to 1 0.00 to 1 1 129,900 75,250] = 51,250 = $ Did the current ratio improve or worsen over the three year period? Current ratio Compute the acid-test ratio for each of the three years. Acid-Test Ratio Choose Numerator: 1 Choose Denominator: = + Acid-Test Ratio Acid-test ratio 0 to 1 0 to 1 + Current Yr: 1 Yr Ago: 2 Yrs Ago: + + I to 1 Did the acid-test ratio improve or worsen over the three year period? Acid-test ratio