At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Current Year 1 Year Ago 2 Years Ago $ 31,767 89,300 113,000 10,230 294,129 $ 538,426 101,224 162,500 140,634 $ 134,068 Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity $ 538,426 $ 37,133 62,200 84,500 9,747 270,580 $ 464,160 $ 78,443 106,757 162,500 116,460 $ 464,160 $ 38,293 51,200 56,000 4,255 237,052 $ 386,800 $ 51,058 85,483 162,500 87,759 $ 386,800 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 $ 699,954 $ 426,972 216,986 1 Year Ago $ 552,350 11,899 9,099 $ 34,998 $ 359,028 139,745 12,704 8,285 $ 32,588 $ 2.01 664,956 $ 2.15 519,762 Compute accounts receivable turnover. Numerator: Accounts Receivable Turnover Denominator: 1 Accounts Receivable Turnover = Accounts receivable turnover => 0 times Current Year: 1 Year Ago: 0 times Compute inventory turnover. Current Year: 1 Year Ago: Inventory Turnover Numerator: Denominator: = = Inventory Turnover Inventory turnover = 0 times = 0 times Compute days' sales in inventory. Current Year: 1 Year Ago: Numerator: 1 1 / Days' Sales In Inventory Denominator: x Days Days' Sales In Inventory x: = Days' sales in inventory x days x days