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. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current Year 1 Year Ago 2 Years Ago $ 35,660 100,253 128,648 11,8281 328,016 $ 604,405 $ 42,100 71,487 $ 42,560 97,356 11,161 298,935 $ 521,039 $ 85,414 116,244 Accounts payable. Long-term notes payable Common stock, $10 par value $ 147,487 112,492 162,500 181,926 162,500 156,881 Total liabilities and equity $ 604,405 $ 521,039 Retained earnings For both the current year and one year ago, compute the following ratios: 57,882 61,046 4,729 263,683 $ 429,900 $ 57,314 92,158 163,500 116,928 $ 429,900 Exercise 17-7 (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?