Exercise 13-7 Analyzing liquidity LO P3 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 $ 37,068 106,392 132,456 11,821 322,237 $ 699,974 $ 42,488 $ 42,948 75,090 58,421 95, 335 60,980 10,932 4,917 301,995 270,934 $ 525,840 $ 438,200 $ 150,365 $ 90,644 $ 57, 264 111,235 162, 5ee 185,874 $ 699,974 119,734 95,874 162,500 162,5ee 152, 962 122,562 $ 525,840 $ 438,200 (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 1 Choose Denominator: 1 = Current Ratio Current ratio to 1 to 1 1 Current Yr: 1 Yr Ago: 2 Yrs Ago: 1 to 1 Complete this question by entering your answers in the tabs below. Required 1A Required 18 Required 2A Required 28 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 ratio for each of the three years. Acid-test ratio Choose Numerator: 1 Choose Denominator: = Acid-Test Ratio Acid-test ratio to 1 Current Yr: 1 Yr Ago: 2 Yrs Ago: to 1 Complete this question by entering your answers in the tabs below. Required 1A Required 18 Required 2A Required 2B Did the acid-test ratio improve or worsen over the three year period? Acid-test ratio Required 2A Required 2B