63,000 84,000 7,282 171, 834 $ 29,193 51,600 51,000 3,244 165, 863 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 Current Year 1 Year Ago 2 Years Ago $ 27,742 $ 23,734 89,500 111,500 7,643 178,098 $ 410,475 $ 353,858 Accounts payable $ 100, 164 $ 58,606 Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity 75,626 162,500 72,185 79,760 162,500 52,992 $ 300,900 $ 38,924 65,169 162,500 34,307 $ 410,475 $ 353,858 $ 300,900 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 charo Current Year 1 Year Ago $ 533,618 $ 421,091 S 325,507 S 273,709 106,536 165,422 506,938 9,072 6,937 S 26, 680 $ 1.64 9,685 6,316 396,246 $ 24,845 $ 1.53 Net income Earnings per share $ 26,680 $ 1.64 3-a) Compute inventory turnover. (3-b) For each ratio, determine if it improved or worsened in the current year. Complete this question by entering your answers in the tabs below. Required 3A Required 3B Compute inventory turnover. Current Yr: 1 Yr Ago: Inventory Turnover Numerator: 1 1 Denominator: Inventory Turnover = Inventory turnover times times $ 24,845 $ 1.53