compute inventory turnover

10, 221 7,816 10,912 7, 117 Interest expense Income tax expense Total costs and expenses Net income Earnings per share $ 571,168 30,061 446, 453 $ 27,992 $ 1.72 1.85 Exercise 13-8 Part 3 (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. = Inventory Turnover Inventory Turnover Choose Numerator: 1 Choose Denominator: Cost of goods sold Average inventory $ 366,7507 308,389 Inventory turnover Current Yr: O times 1.7 times 1 Yr Ago: Required 3B [The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow, At December 31 Assets Current Yr1 Yr Ago 2 Yrs Ago Cash $ 27.914 89,000 111.500 8.699 226, 271 $ 462, 484 $ 31.576 $ 32,892 62, 600 51,800 82,50053,000 8. 2893 ,655 213,728 194,253 $ 398, 693 $ 335, 600 Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 114,007 $ 66,705 $ 43,856 86,078 162.500 99.899 $ 462,484 90, 782 73,426 162,580 162,500 78, 706 55,818 $ 398,693 $ 335, 600 The company's income statements for the Current Year and 1 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 Yr $ 601, 229 $ 366, 750 186, 381 10, 221 7,816 571, 168 $ 30,061 $ 1.85 1 Yr Ago $ 474, 445 $ 308, 389 120,035 10,912 7, 117 446, 453 $ 27,992 1.72