Exercise 13-8 Analyzing and interpreting liquidity LO P3 [The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ago At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net $ 37,366 89,500 114,500 12,033 367,497 $ 620,896 $ 43,677 $ 44,159 62,800 51,490 83,000 57,000 11,465 4,907 334,313 279,834 $ 535,255 $ 437,300 Total assets $ 157,695 $ 92,267 $ 58,878 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 119,063 162,500 181,638 $ 620,896 125,571 98,576 162,500 162,500 154,917 117,346 $ 535,255 $ 437,300 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 Current Yr $ 807, 165 $ 492,371 250, 221 13,722 10,493 766,807 $ 40,358 1 Yr Ago $636,953 $ 414,019 161,149 14,650 9,554 599,372 $ 37,581 Earnings per share $ 2.48 $ 2.31 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. (3-6) 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 Choose Denominator: Inventory Turnover Choose Numerator: = Inventory turnover 0 times Current Yr: O times 1 Yr Ago: Required 3B >