Explain how you find it pls ( like current year, 1year ago)

Required information 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. Current Year 1 Year Ago 2 Years Ago At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity $ 25,042 74,778 94,019 8,227 226,655 $ 428,721 $ 29,271 52,777 67,690 7,917 211,932 $ 369,587 $ 30,491 41,065 43,734 3,491 192,319 $ 311,100 $ 109,954 79,794 163,500 75,473 $ 428,721 $ 62,460 84, 155 162,500 60,472 $ 369,587 $ 41,887 66,691 162,500 40,022 $ 311,100 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? Required 1A Required 1B Required 2A Required 2B Compute the current ratio for each of the three years. Numerator: Current Ratio Denominator: Current liabilities = Current Ratio Current assets 251,697 X $ 428,721 X = 0.59 Current Year: 1 Year Ago: 2 Years Ago: Current ratio to 1. to 0 1 to 0 1 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 1B Required 2A Required 2B three SERE Acid-test ratio Numerator: Denominator: + Short-term investments - Current Year: + + Acid-Test Ratio Acid-test ratio to 0 1 to 0 1 0 to 1 + + 1 Year Ago: 2 Years Ago: + Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required Did the acid-test ratio improve or worsen over the three-year period? Acid-test ratio