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Required information [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Assets Current Year 1 Year Ago 2 Years Ago Cash $ 37,585 Accounts receivable, net 102,588 $ 43,080 76,884 128,984 11,751 337,574 113,949 163,500 182,411 96,664 10,861 305,685 $ 533,174 $ 90,106 121,404 163,500 158,164 $ 618,482 $ 533,174 $ 43,556 56,924 61,855 4,887 268,378 $ 435,600 $ 56,349 93,380 162,500 123,371 $ 435,600 Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable $ 618,482 $ 158,622 Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity For both the current year and one year ago, compute the following ratios: (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: Current Ratio Denominator: = Current Ratio = Current ratio = to 1 to 1 to 1 Required 1A Required 1B > 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 2A > Required 1A Required 1B Required 2A Required 2B Compute the acid-test ratio for each of the three years. Numerator: Current Year: 1 Year Ago: 2 Years Ago: + Short-term investments + Acid-test ratio Denominator: < Required 1B Required 2B > Acid-Test Ratio = Acid-test ratio to 1 to 1 to 1 Required 1A Required 1B Required 2A Required 2B Did the acid-test ratio improve or worsen over the three-year period? Acid-test ratio < Required 2A Required 2B >

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