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 $ 25,031 73,267 89,410 7,981 224,370 $ 420,059 29,549 $ 30,799 51,711 40, 244 67,662 45,060 7,681 3,319 205,517 191,678 $ 362,120 $ 311,100 $ 107,733 $ 59,974 $ 39,833 78,971 162,500 70,855 $ 420,059 81,622 69,441 162,500 162,500 58,024 39,326 $ 362,120 $ 311,100 (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. (2-6) 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. Choose Numerator: Current Ratio I Choose Denominator: 1 11 I! Current Yr: 1 Yr Ago: 2 Yrs Ago: Current Ratio Current ratio to 1 to 1 to 1 11 Required 1A Required 1B > 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: + + 1 = + + = 0 to 1