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 $ 31,025 86,394 111,950 9,795 276,376 $ 515,540 $ 35,199 $ 38,147 63,465 49,875 80,575 52,060 9,613 4,156 255,579 229,862 $ 444,431 $ 374,100 $ 130,937 $ 74,358 $ 48,887 96,922 162,500 125, 181 $ 515,540 101,197 83,503 162,500 162,500 106,376 79,210 $ 444,431 $ 374,100 (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-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 7 Choose Denominator: Choose Numerator: Current Ratio Current ratio Current Yr: to 1 7 1 Yr Ago: 2 Yrs Ago: to 1 to 1 Required 1B > Required 1A Required 1B Required 2A Required 2B Compute the acid-test ratio for each of the three years. Acid-test ratio Choose Numerator: 7 Choose Denominator: Acid-Test Ratio + / + + / Current Yr: 1 Yr Ago: 2 Yrs Ago: Acid-test ratio 0 to 1 0 to 1 0 to 1 + + =