(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?

(1-a) Compute days' sales uncollected. (1-b) Determine if days' sales uncollected improved or worsened in the current year. (2-a) Compute accounts receivable turnover. (2-b) Determine if accounts receivable turnover ratio improved or worsened in the current year. (3-a) Compute inventory turnover. (3-b) Determine if inventory turnover ratio improved or worsened in the current year. (4-a) Compute days' sales in inventory. (4-b) For each ratio, determine if days' sales in inventory improved or worsened in the current year.

(1) Debt and equity ratios. (2-a) Compute debt-to-equity ratio for the current year and one year ago. (2-b) Based on debt-to-equity ratio, does the company have more or less debt in the current year versus one year ago? (3-a) Times interest earned. (3-b) Based on times interest earned, is the company more or less risky for creditors in the Current Year versus 1 Year Ago?

Required Information [The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. 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 Current Year $ 33,011 98,574 119,078 10,631 303,858 $ 565,152 $ 40,145 67,526 90,132 10,334 279,063 $ 487,200 $ 40,194 52,520 56,499 4,555 252,232 $ 406,000 $ 140,723 105,186 163,500 155,743 $ 565, 152 $ 83,984 112,056 162,500 128,660 $ 487,200 $ 51,984 90,623 163,500 99,893 $ 406,000 For both the current year and one year ago, compute the following ratios: Required 1A Required 1B Required 2A Required 2B Compute the current ratio for each of the three years. Current Ratio Denominator: Numerator: 11 A = Current Year: 1 Year Ago: 2 Years Ago: Current Ratio Current ratio 0 to 1 0 to 1 0 to 1 1 / 11 Required 1A Required 1B > Required 1A Required 1B Required 2A Required 2B Compute the acid-test ratio for each of the three years. Acid-test ratio Numerator: Denominator: Short-term investments 11 + 11 = Acid-Test Ratio Acid-test ratio 0 to 1 oto 1 0 to 1 Current Year: 1 Year Ago: 2 Years Ago: + + 11 + + II The company's Income statements for the current year and one year ago follow. Assume that all sales are on credit: For Year Ended December 31 Current Year 1 Year Ago Sales $ 734,698 $ 579,768 Cost of goods sold $ 448,166 $ 376,849 Other operating expenses 227,756 146,681 Interest expense 12,490 13,335 Income tax expense 9,551 8,697 Total costs and expenses 697,963 545,562 Net income $ 36,735 $ 34,206 Earnings per share $ 2.26 $ 2.10 Required 1A Required 1B Required 2A Required 2B Required 3A Required 3B Required 4A Required 4B Compute days' sales uncollected. Days' Sales Uncollected 1 Denominator: Numerator: Days = * Days' Sales Uncollected Days' sales uncollected 0 days 0 days = Current Year: 1 Year Ago: Required 1A Required 1B > Required 1A Required 1B Required 2A Required 2B Required 3A Required 3B Required 4A Required 4B Compute accounts receivable turnover. (Round your answers to the nearest whole number.) Accounts Receivable Turnover Numerator: 1 Denominator: / Accounts Receivable Turnover Accounts receivable turnover 0 times Current Year: 1 = 1 Year Ago: 0 times Required 1A Required 1B Required 2A Required 2B Required 3A Required 3B Required 4A Required 4B Compute inventory turnover. (Round your answers to the nearest whole number.) Inventory Turnover 1 Denominator: Numerator: 11 Inventory Turnover Inventory turnover 0 times 0 times / II Current Year: 1 Year Ago: Required 1A Required 1B Required 2A Required 2B Required 3A Required 3B Required 4A Required 4B Compute days' sales in inventory. Days' Sales In Inventory. Denominator: Numerator: Days / 11 Days' Sales In Inventory Days' sales in inventory 0 days 0 days / x 11 Current Year: 1 Year Ago: / 11 Required 1 Required 2A Required 2B Required 3A Required 3B Compute debt and equity ratio for the current year and one year ago. Debt Ratio Numerator: Denominator: Debt Ratio Debt ratio % 11 Current Year: 1 Year Ago: 11 % Equity Ratio Numerator: Denominator: Equity Ratio Equity ratio / / % Current Year: 1 Year Ago: % Required 1 Required 2A Required 2B Required 3A Required 3B Compute debt-to-equity ratio for the current year and one year ago. Numerator: Debt-To-Equity Ratio Denominator: / Debt-To-Equity Ratio Debt-to-equity ratio 11 1 11 to 1 Current Year: 1 Year Ago: = to 1 Required 1 Required 2A Required 2B Required 3A Required 3B Compute times interest earned for the current year and one year ago. Times Interest Earned Numerator: Denominator: Times Interest Earned Times interest earned times times Current Year: 1 Year Ago: