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. At December 31 Assets Current Year 1 Year Ago 2 Years Ago Cash $ 31,170 Accounts receivable, net $ 35,364 64,387 Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity 89,455 109,132 10,038 278,157 $ 517,952 85,082 9,564 252,113 $ 446,510 Accounts payable $ 128,970 Long-term notes payable Common stock, $10 par value. Retained earnings 96,401 163,500 129,081 $ 76,215 103,724 163,500 103,071 Total liabilities and equity $ 517,952 $ 446,510 For both the current year and one year ago, compute the following ratios: $ 37,217 50,635 53,926 4,262 237,560 $ 383,600 $ 51,142 87,319 163,500 81,639 $ 383,600 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-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 28 Compute the current ratio for each of the three years. Current Year: 1 Year Ago: 2 Years Ago: Numerator: Current Ratio Denominator: Current Ratio Current ratio to 1 to 1 to 1 Required 1B > Pray 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 18 Required 2A Required 28 Compute the acid-test ratio for each of the three years. Current Year: 1 Year Ago: 2 Years Ago: Numerator: Short-term investments + + Acid-test ratio Denominator: Acid-Test Ra Acid-test rati to 1 to 1 to 1 < Required 1B Required 2B >