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, See 112,5ee 10,7ee 278,500 $ 523,880 $ 35,625 $ 37,880 62,5ee 50,200 82,5ee 54,800 9,375 5, eee 255,000 238,500 $ 445, eee $ 377,5ee $ 129,900 $ 75,250 $ 51,25e 98, See 163,5ee 131, 100 $ 523,000 181, see 83,500 163, see 163,500 104,750 79,25e 5445,888 5 377,588 The company's income statements for the Current Year and 1 Year Ago follow. Assume that all sales are on credi For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Netiscono Current Yr 5673,500 $ 411,225 200.550 12.100 90525 642.400 31,100 1 Yn Ago $ 532,300 $345.500 134.980 13,300 8.8 S2162 $ 29,375 5 1.80 Earnings per share 1.00 (4-a) Compute days' sales in inventory. (4-6) 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 4A Required 4B Compute days' sales in inventory. Days' Sales In Inventory Choose Numerator: Choose Denominator: Days = Days' Sales In Inventory Days' sales in inventory = Current Yr: 1 Yr Ago x x o days days = Required 4B > Required 4A Required 48 For each ratio, determine if it improved or worsened in the current year. Days sales in inventory