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[The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Current Year 1 Year Ago 2 Years

[The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow.

At December 31 Current Year 1 Year Ago 2 Years Ago
Assets
Cash $ 32,657 $ 37,410 $ 38,976
Accounts receivable, net 94,650 64,799 50,929
Merchandise inventory 116,625 90,041 56,464
Prepaid expenses 10,727 9,920 4,417
Plant assets, net 298,851 274,994 242,914
Total assets $ 553,510 $ 477,164 $ 393,700
Liabilities and Equity
Accounts payable $ 140,580 $ 79,028 $ 53,527
Long-term notes payable 106,141 109,748 86,138
Common stock, $10 par value 162,500 162,500 163,500
Retained earnings 144,289 125,888 90,535
Total liabilities and equity $ 553,510 $ 477,164 $ 393,700

(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?

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! Required information [The following information applies to the questions displayed below. Simon Company's year-end balance sheets follow. Current Year 1 Year Ago 2 Years 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 Common stock, $10 par value Retained earnings Total liabilities and equity $ 32,657 94,650 116,625 10,727 298,851 $ 553,510 $ 37,410 64,799 90,041 9,920 274,994 $ 477, 164 $ 38,976 50,929 56, 464 4,417 242,914 $ 393,700 $ 140,580 106, 141 162,500 144,289 $ 553,510 $ 79,028 109,748 162,500 125,888 $ 477,164 $ 53,527 86,138 163,500 90, 535 $ 393,700 (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 Denominator: Numerator: 1 = Current Ratio Current ratio = to 1 Current Year: 1 Year Ago: 2 Years Ago: to 1 1 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 Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2B Compute the acid-test r Required 1B the three years. Acid-test ratio Numerator: 1 Denominator: = Acid-Test Ratio + Short-term investments + 1 = Acid-test ratio Current Year: + + 1 = to 1 + + 1 = to 1 1 Year Ago: 2 Years Ago: + + + 1 to 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

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