Exercise 13-11 Efficiency and profitability analysis LO P3 [The following information applies to the questions displayed below.] Simon Companys year-end balance sheets follow. At December 31 2014 2013 2012 Assets Cash $ 31,800 $ 35,625 $ 37,800 Accounts receivable, net 89,500 62,500 50,200 Merchandise Inventory 112,500 82,500 54,000 Prepaid expenses 10,700 9,375 5,000 Plant assets, net 278,500 255,000 230,500 Total assets $ 523,000 $ 445,000 $ 377,500 Liabilities and Equity Accounts payable $ 129,900 $ 75,250 $ 51,250 Long-term notes payable secured by mortgages on plant assets 98,500 101,500 83,500 Common stock, $10 par value 163,500 163,500 163,500 Retained earnings 131,100 104,750 79,250 Total liabilities and equity $ 523,000 $ 445,000 $ 377,500 The companys income statements for the years ended December 31, 2014 and 2013, follow. For Year Ended December 31 2014 2013 Sales $ 673,500 $ 532,000 Cost of goods sold $ 411,225 $ 345,500 Other operating expenses 209,550 134,980 Interest expense 12,100 13,300 Income taxes 9,525 8,845 Total costs and expenses 642,400 502,625 Net Income $ 31,100 $ 29,375 Earnings per share $ 1.90 $ 1.80

(1)	Compute the current ratio for the year ended 2014, 2013, and 2012.
	Compute days' sales uncollected. (Use 365 days a year.) choose numerator / choose denominator = current ratio ? ? 2014 ? / ? 2013 ? / ?

(2)

Compute the acid-test ratio for the year ended 2014, 2013, and 2012.

Compute days' sales uncollected. (Use 365 days a year.)

choose numerator / choose denominator x days 365 days sales uncollected

? ?

2014 ? / ? x days 365

2013 ? / ? x days 365

Exercise 13-9 Part 1

(1)	Compute days' sales uncollected. (Use 365 days a year.) choose numerator / choose denominator x days 365 days sales uncollected ? ? 2014 ? / ? x days 365 2013 ? / ? x days 365

Exercise 13-9 Part 2

(2)

Compute accounts receivable turnover.

Exercise 13-11 Part 1

(1)	Profit margin ratio. choose numerator / choose denominator = profit margin ratio % 2014 ? / ? = ? % 2013 ? / ? = ? %

Exercise 13-11 Part 2

(2)	Total asset turnover.
	choose numerator / choose denominator = total asset turnover 2014 ? / ? = ? times 2013 ? / ? = ? times