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 Current Year 1 Year Ago $29.963 $ 26,691 75,060 55, 139 94.374 70, 719 8.510 8, 109 243.271 222, 196 $447,906 $386, 126 2 Years Ago $ 30.618 40,000 44,804 3,402 193.576 $312.400 Liabilities and Equity Accounts payable $ 108, 183 Long-term notes payable. Common stock. $10 par value 85, 890 163, 500 90 333 $66,560 88, 809 163,500 Retained earnings 67 257 Total liabilities and equity $ 447,906 $ 386, 126 For both the current year and one year ago, compute the following ratios: $41.649 66,969 162, 500 41, 282 $ 312,400 (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 28 Compute the current ratio for each of the three years. Current Ratio Current Year: 1 Year Ago: 2 Years Ago: Numerator: Denominator: Complete this question by entering your answers in the tabs below. Required 1A Required 18 Required 2A Required 28 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 < Required 1B Denominator: Required 2B > = Acid-Test Ratio Acid-test ratio 0 to 1 0 to 1 0 to 1 = = =