Company's year-end balance sheets follow. 3 4 At December 31 Current Year 1 Year Ago 2 Years Ago 5 Assets 6 Cash $31,800 $35,625 $37,800 7 Accounts receivable, net 89,500 62,500 50,200 8 Merchandise inventory 112,500 82,500 54,000 9 Prepaid expenses 10,700 9,375 5,000 10 Plant assets, net 278,500 255,000 11 Total assets $523,000 $445,000 230,500 $377,500 23456 12 Liabilities and Equity 13 Accounts payable $129,900 $75,250 $51,250 14 Long-term notes payable 98,500 1,01,500 83,500 15 Common stock, $10 par value 163,500 163,500 163,500 16 Retained earnings 131,100 104,750 79,250 17 Total liabilities and equity $523,000 $343,500 $377,500 18 19 The company's income statements for the current year and one year ago follow. Assume that all sales are on credit: 20 21 31 Current Year 2222222 Sales $673,500 23 Cost of goods sold $411,225 24 Other operating expenses 25 Interest expense 26 Income tax expense 209,550 12,100 9,525 27 Total costs and expenses 642,400 22113 Nat income 1 Year Ago $532,000 $345,500 134,980 13,300 8,845 502,625 530 375 A C D E F G H I M 22 Sales $673,500 $532,000 23 Cost of goods sold $411,225 $345,500 24 Other operating expenses 209,550 134,980 C 25 Interest expense 12,100 13,300 26 Income tax expense 9,525 8,845 27 Total costs and expenses 28 Net income 29 Earnings per share 642,400 $31,100 $1.90 502,625 $29,375 $1.80 30 31 Required: 32 (1-a) Compute days' sales uncollected. 33 34 (Use cells A4 to E29 from the given information to complete this question.) 35 36 37 38 Numerator: Days' Sales Uncollected Denominator: 39 Current Year: 40 1 Year Ago: 41 42 (1-b) Determine if days' sales uncollected improved or worsened in the current year. 43 44 Days' sales uncollected 45 46 (2-a) Compute accounts receivable turnover. 47 48 (Use cells A4 to E29 from the given information to complete this question.) + Days Jays' Sales Uncollecte Days' sales uncollected days 0 days ne Wo 47 48 (Use cells A4 to E29 from the given information to complete this question.) 49 50 51 52 53 Current Year: 54 1 Year Ago: Numerator: Accounts Receivable Turnover Denominator: 55 56 (2-b) Determine if accounts receivable turnover ratio improved or worsened in the current year. 57 58 Accounts receivable turnover 59 60 (3-a) Compute inventory turnover. 61 62 (Use cells A4 to E29 from the given information to complete this question.) 63 64 65 Inventory Turnover Numerator: Denominator: 66 67 Current Year: 68 1 Year Ago: 69 70 (3-b) Determine if inventory turnover ratio improved or worsened in the current year. 71 72 Inventory turnover = Accounts Receivable Turnover Accounts receivable turnover nventory Turnover Inventory Turnover times times times times 73 74 (4-a) Compute days' sales in inventory. 75 76 (Use cells A4 to E29 from the given information to complete this question.) 77 78 79 Numerator: Days' Sales Uncollected Denominator: Days ays' Sales In Inventor 80 81 Current Year: 0 82 1 Year Ago: O Days' sales in inventory days days 83 84 (4-b) For each ratio, determine if days' sales in inventory improved or worsened in the current year. 85 86 Days' sales in inventory 87 88 89 90 Students: The scratchpad area is for you to do any additional work you need to solve this question or can be used to show your work. 91 Nothing in this area will be graded, but it will be submitted with your assignment. 92 93 94 95 96 97 X= Graded Worksheet +