Exercise 13-8 Analyzing and interpreting liquidity LO P3

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[The following information applies to the questions displayed below.] Simon Companys year-end balance sheets follow.

At December 31	Current Yr					1 Yr Ago			2 Yrs Ago
Assets
Cash		$	25,469			$	29,771		$	30,397
Accounts receivable, net			89,800				62,500			51,900
Merchandise inventory			111,000				84,000			55,000
Prepaid expenses			8,202				7,815			3,377
Plant assets, net			192,929				184,362			163,326
Total assets		$	427,400			$	368,448		$	304,000
Liabilities and Equity
Accounts payable		$	107,487			$	62,890		$	40,529
Long-term notes payable secured by mortgages on plant assets			81,155				85,590			67,856
Common stock, $10 par value			162,500				162,500			162,500
Retained earnings			76,258				57,468			33,115
Total liabilities and equity		$	427,400			$	368,448		$	304,000

The companys income statements for the Current Year and 1 Year Ago, follow. Assume that all sales are on credit:

For Year Ended December 31	Current Yr						1 Yr Ago
Sales				$	555,620					$	438,453
Cost of goods sold	$	338,928					$	284,994
Other operating expenses		172,242						110,929
Interest expense		9,446						10,084
Income tax expense		7,223						6,577
Total costs and expenses					527,839						412,584
Net income				$	27,781					$	25,869
Earnings per share				$	1.71					$	1.59

Exercise 13-8 Part 1 (1-a) Compute days' sales uncollected. (1-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 A Required 10 Compute days' sales uncollected. Choose Numerator: Days Sales Uncollected 1 Choose Denominator: * Days x - Days" Sales Uncollected Days' Sales Uncollected days days Current Yr 1 Yr Ago: x 1 X Required 1A Required 18 For each ratio, determine if it improved or worsened in the current year. Days' es uncollected