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 Current Year 1 Year Ago 2 Years Ago $ 34,725 101,682 $ 40,591 74,695 $ 44,461 99,672 11,204 296,914 127,846 11,759 330,756 $ 606,768 $ 523,076 $ 86,632 121,511 162,500 152,433 59,282 61,897 4,746 269,914 $ 440,300 $ 56,957 98,279 163,500 Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings $ 151,085 115,213 162,500 177,970 Total liabilities and equity $ 606,768 $ 523,076 $ 440,300 121,564 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. 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 2B Compute the current ratio for each of the three years. Current Year: $ 1 Year Ago: 2 Years Ago: Numerator: 3/ Current Ratio Denominator: Current Ratio = Current ratio = 0 to 1 = to 1 = to 1 (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 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 Ratio = Acid-test ratio = 0 to 1 = 0 to 1 = 0 to 1