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 Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Current Year 1 Year Ago 2 Years Ago $ 38,492 $ 32,597 98,333 122,423 10,605 299,815 $ 563,773 68,042 88,114 10,206 281,157 $ 486,011 $ 84,600 114,018 163,500 123,893 Long-term notes payable Common stock, $10 par value Retained earnings $ 141,783 108,109 163,500 150,381 Total liabilities and equity $ 563,773 $ 486,011 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-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. $ 40,906 52,921 59,254 4,410 251,609 $ 409,100 $ 52,921 92,219 163,500 100,460 $ 409,100 Required 1A Required 1B Required 2A Required 2B Compute the current ratio for each of the three years. Current Year: 1 Year Ago: 2 Years Ago: Current Ratio Numerator: 1 Denominator: = Current Ratio = Current ratio to 1 => to 1 to 1 Required 1A Required 1B > (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 2B Did the current ratio improve or worsen over the three-year period? Current ratio < Required 1A Required 2A Compute the acid-test ratio for each of the three years. urrent Year: Year Ago: Years Ago: Numerator: Short-term investments Acid-test ratio Denominator: Acid-Test Ratio Acid-test ratio to 1 to 1 to 1 Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2B Did the acid-test ratio improve or worsen over the three-year period? Acid-test ratio < Required 2A Required 2B