Use the following information for the Exercises below. (Algo)

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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 Ago
Assets
Cash	$ 30,127	$ 34,867	$ 36,676
Accounts receivable, net	84,724	60,407	47,942
Merchandise inventory	105,437	80,630	53,122
Prepaid expenses	9,606	9,336	4,075
Plant assets, net	275,680	250,600	221,385
Total assets	$ 505,574	$ 435,840	$ 363,200
Liabilities and Equity
Accounts payable	$ 128,406	$ 74,394	$ 46,984
Long-term notes payable	95,998	101,246	77,859
Common stock, $10 par value	162,500	162,500	163,500
Retained earnings	118,670	97,700	74,857
Total liabilities and equity	$ 505,574	$ 435,840	$ 363,200

(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-b) 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.

Current Ratio
	Numerator:	/	Denominator:	=	Current Ratio
		/		=	Current ratio
Current Year:		/		=		to 1
1 Year Ago:		/		=		to 1
2 Years Ago:		/		=		to 1