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 $ 31,800 89,589 112,500 10,700 278,500 $ 523,880 $ 35,625 $ 37,880 62,500 58, 280 82,5ee 54,990 9,375 5, ees 255, eee 238,589 $ 445,Bee $ 377,589 $ 129,900 $ 75,250 $ 51,250 98, 5ee 163,500 131, 12 5 $25,000 101,50 83,5ea 163, see 153,50 184,50 79,25e $445,000 $377,589 The company's income statements for the Current Year and 1 Year Ago follow. Assume that al For Year Ended December 31 Sales Cost of goods sold other operating expenses Interest expense Income tax expense Total costs and expenses Net incotte Earnings per share Current Yr $63.54 5411, 225 209.55 12, 100 1 yr Ago $ 532,80 $345, 50e 13.300 8.80 302.625 $ 51 Required 3A Required 3B Compute inventory turnover. Inventory Turnover Choose Denominator: Choose Numerator: Inventory Turnover Inventory turnover 11 Current Yr: times 1 Yr Ago: times Re ed 3B > Required 3A Required 3B For each ratio, determine if it improved or worsened in the current year. Inventory turnover