7 Part 3 of 4 2.14 points Required information {The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. At December 31 Current Year 1 Year Ago 2 Years Ago Assets Cash $ 34,239 $ 40,022 $ 41,273 Accounts receivable, net 89, 200 62,900 50,500 Merchandise inventory 111,500 B4,000 51,000 Prepaid expenses 11,026 10,506 4,586 Plant assets, net 334, 360 302, 852 269,541 Total assets $ 580, 325 $ 500,280 $ 416,900 Liabilities and Equity Accounts payable $ 144, 501 $ 84,547 $ 55,031 Long-term notes payable 109, 101 115,064 92,135 Common stock, $10 par value 162,500 162,500 162,500 Retained earnings 164,223 138, 169 107,234 Total liabilities and equity $ 580,325 $ 500,280 $ 416,900 eBook Print References 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 Current Year $ 754,423 $ 460,198 233, 871 12,825 9,807 716,701 $ 37,722 1 Year Ago $ 595,333 $ 386,966 150, 619 13,693 8,930 560,208 $ 35, 125 $ 2.16 $ 2.32 (3-a) Compute inventory turnover. (3-b) For each ratio, determine if it improved or worsened in the current year