[The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Assets Current Year 1 Year Ago 2 Years Ago Cash Accounts receivable, net Merchandise inventory $ 28,720 85,737 102,565 $ 34,243 Prepaid expenses Plant assets, net Total assets Liabilities and Equity 8,971 260,789 $ 486,782 Accounts payable $ 119,997 Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity 90,600 163,500 112,685 60,512 76,081 8,812 239,992 $ 419,640 $ 68,792 94,587 162,500 93,761 $ 486,782 $ 419,640 For both the current year and one year ago, compute the following ratios: (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. $ 34,967 46,160 48,664 3,885 216,024 $ 349,700 $ 45,237 78,829 162,500 63,134 $ 349,700 Required 1A Required 1B Required 2A Required 2B Compute the current ratio for each of the three years. Current Ratio Numerator: Denominator: Current Ratio Total liabilities Total assets = Current ratio Current Year: = 0 to 1 1 Year Ago: = 0 to 1 = 0 to 1 2 Years Ago: 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 Denominator: Acid-Test Ratio = Acid-test ratio + = 0 to 1 + + = 0 to 1 = 0 to 1 Numerator: + Short-term investments + Current Year: + 1 Year Ago: 2 Years Ago: + Did the acid-test ratio improve or worsen over the three-year period? Acid-test ratio