6 Required information [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 Accounts payable ces Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity Current Year 1 Year Ago 2 Years Ago $ 41,376 72,409 $ 43,976 58,054 62,452 $ 35,398 104,645 126,411 11,513 321,991 $ 599,958 $146,402 115,048 163,500 175,008 97,597 11,079 294,744 $ 517,205 $ 84,785 116,578 162,500 4,789 270,529 $439,800 $ 56,312 98,168 163,500 121,820 153,342 $ 599,958 $ 517,205 $ 439,800 For both the current year and one year ago, compute the following ratios. 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 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Earnings per share (1-a) Compute days' sales uncollected. Current Year $ 475,766 241,783 13,259 10,139 1 Year Ago $ 779,945 $ 400,058 155,715 14,156 $ 615,474 9,232 740,947 579,161 $ 36,313 $ 38,998 $ 2.40 (1-b) Determine if days' sales uncollected improved dworsened in the current year. (2-a) Compute accounts receivable turnover. $ 2.23 (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. Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. 16 Required 1A Required 1B Required 2A Required 2B Required 3A Required 3B. Required 4A Required 4B ok Compute days' sales uncollected. Current Year: t 1 Year Ago: ences Days' Sales Uncollected Numerator: Denominator: Days =Days' Sales Uncollected Days' sales uncollected. Required 1A Required 1B > days days Required 1A Required 18 Required 2A Required 2B Required 3A Required 3B Required 4A Required 4B Compute accounts receivable turnover. Note: Round your answers to the nearest whole number. Current Year: Year Ago: Numerator: Accounts Receivable Turnover Denominator: 1 Accounts Receivable Turnover = < Required 1B Required 2B > Accounts receivable turnover times times 3 of 6 Required 1A nts Required 1B Required 2A Required 2B Required 3A Required 3B Required 4A Required 4B Compute inventory turnover. eBook Hint Note: Round your answers to the nearest whole number. Inventory Turnover Numerator: Denominator: Print Current Year: eferences 1 Year Ago: < Required 2B = Inventory Turnover Inventory turnover times Required 3B > times Complete this question by entering your answers in the tabs below. 3 of 6 Required 1A Required 18 Required 2A Required 2B Required 3A Required 3B1 Required 4A Required 48 ts Compute days' sales in inventory. Days' Sales In Inventory eBook Hint Numerator: ' Denominator: M Days Days' Sales In Inventory x Days' sales in inventory Prot Current Year: lorences 1 Year Ago: x days ' x = days < Required 3B Required 48 >