Use the following information for the Exercises below. (Algo) Skip to question [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 $ 26,032 $ 30,429 $ 30,442 Accounts receivable, net 76,943 53,778 41,007 Merchandise inventory 95,801 68,277 45,914 Prepaid expenses 8,383 8,067 3,557 Plant assets, net 229,692 216,045 196,080 Total assets $ 436,851 $ 376,596 $ 317,000 Liabilities and Equity Accounts payable $ 105,513 $ 64,918 $ 42,262 Long-term notes payable 80,485 89,216 69,356 Common stock, $10 par value 163,500 163,500 163,500 Retained earnings 87,353 58,962 41,882 Total liabilities and equity $ 436,851 $ 376,596 $ 317,000

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