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 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 $ 37,032 89,300 111,500 11,926 365, 601 $615,359 $ 43,287 $ 43,765 62,900 51,400 82,500 55,000 11,363 4,863 330, 432 278,372 $ 530,482 $ 433,400 $156,289 $ 91,444 $ 58,353 118,001 162,500 178,569 $ 615,359 124,451 97,697 162,500 162,500 152,087 114,850 $ 530,482 $ 433,400 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 $ 799,967 $ 487,980 247,990 13,599 10,400 759,969 $ 39,998 $ 2.46 1 Yr Ago $ 631,274 $ 410,328 159,712 14,519 9,469 594,028 $ 37,246 $ 2.29 (1-a) Compute days' sales uncollected. (1-6) 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 1A Required 1B Compute days' sales uncollected. Days' Sales Uncollected 1 Choose Denominator: Choose Numerator: Days 1111 Days' Sales Uncollected Days' Sales Uncollected days days Current Yr: 1 Yr Ago: Required 1 Required 10 (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 1A Required 1B For each ratio, determine if it improved or worsened in the current year. Days' sales uncollected