Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2017 2016 2015 Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
2017 2016 2015 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 Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 32,221 $ 37,663 $ 37,709 89,200 62,800 51,900 110,500 83,000 57,000 10,376 9,886 4,190 287,908 263,724 219,001 $530,205 $ 457,073 $ 369,800 $ 135,982 $ 79,563 $50,278 102,669 108,281 84,178 162,500 162,500 162,500 129,054 106,729 72,844 $530,285 $ 457,073 $ 369,800 The company's income statements for the years ended December 31, 2017 and 2016, follow. Assume that all sales are on credit: For Year Ended December 31 2017 2016 Sales $ 689,267 $ 543,917 Cost of goods sold $ 420,453 $ 353,546 Other operating expenses 213,673 137,611 Interest expense 11,718 12,510 Income taxes 8,960 8,159 Total costs and expenses 654,804 511,826 Net income $ 34,463 $ 32,091 $ 2.12 $ Earnings per share 1.97 (1) Compute days' sales uncollected Days Sales Uncollected Choose Numerator: 1 Choose Denominator: Days Days' Sales Uncollected Days' Sales Uncollected 11 1 1 x = 2017: 2016: O days o days 1 X (2) Compute accounts recelvable turnover. Accounts Receivable Turnover 1 Choose Denominator: Choose Numerator: Accounts Receivable Tumover Accounts recolvablo turnover times times 2017: 2016: (3) Compute inventory turnover. Inventory Turnover 1 Choose Denominator: Choose Numerator: = Inventory Turnover Inventory turnover times 2017: 2016: 11 times (4) Compute days' sales in Inventory. Days' Sales In Inventory Choose Numerator: I Choose Denominator: x Days 11 X X 11 Days' Sales In Inventory Days' sales in inventory O days 0 days 2017: X 2016: X =

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Mathematics Of Finance

Authors: Petr Zima

2nd Edition

0070082030, 9780070082038

More Books

Students also viewed these Accounting questions

Question

Does mind reading help or hinder communication?

Answered: 1 week ago