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Compute the acid$-$test ratio for each of the three years.At December $31$ Current Year $1$ Year Ago $2$ Years Ago

Assets

Cash $ $25,893$ $ $29,964$ $ $29,989$

Accounts receivable, net $77,29953,49740,801$

Merchandise inventory $96,24570,69243,014$

Prepaid expenses $8,5057,7863,332$

Plant assets, net $230,930216,399191,964$

Total assets $ $438,872$ $ $378,338$ $ $309,100$

Liabilities and Equity

Accounts payable $ $108,186$ $ $63,300$ $ $41,209$

Long$-$term notes payable $81,68385,27768,311$

Common stock, $$10$ par value $163,500163,500163,500$

Retained earnings $85,50366,26136,080$

Total liabilities and equity $ $438,872$ $ $378,338$ $ $309,100$