Transcribed image text : Required information Use the following information for the Exercises below. (Algo) [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 ansets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity $ 28,257 81,898 104,022 9,564 264,968 $ 488,709 $ 34,041 60,162 76,382 8,759 241,957 $ 421, 301 $ 34,417 45) 434 47,899 3,900 212,550 $ 344,200 $ 119,255 93,715 162,500 113,239 S 488,709 $ 71,912 97,868 162,500 89,021 $ 421, 301 $ 44,980 74,547 162,500 62, 173 $ 344,200 For both the current year and one year ago, compute the following ratios: Exercise 13-7 (Algo) Analyzing liquidity LO P3 (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? Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 28 Compute the current ratio for each of the three years. Current Ratio Numerator: Denominator Current Ratio Current ratio Total assets x 0 Current Year: 1 Year Ago: 2 Years Ago: 0 to 1 to 1 to 1 0 Answer is not complete 015 Complete this question by entering your answers in the tabs below Required 1A Required 10 Required 2A Required 25 Compute the acid-test ratio for each of the three years Acid-testratia Denominator Numerator Shortcom investments Acid-Tes: Ratio Adet dio 0 Current Year Year Ago 2 Years Age to 1 10 1 10 1 0