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. 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 Current Yr 1 Yr Ago 2 Yrs Ago $ 30,571 $ 35,735 $ 36,486 89,800 113,500 62,300 82,000 50,700 55,000 9,845 9,380 4,054 269,304 252,844 218,660 $513,020 $442,259 $364,900 $129,019 $ 75,489 $ 48,648 97,412 162,500 124,089 $513,020 102,737 162,500 162,500 81,449 101,533 72,303 $442,259 $364,900 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 1 Yr Ago $ 526,288 $ 666,926 $406,825 206,747 11,338 8,670 633,580 $ 33,346 $ 342,087 133,151 12,105 7,894 495,237 $ 31,051 $ 2.05 $ 1.91 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. Required 3A Required 38 Compute inventory turnover. Current Yr: 1 Yr Ago: Inventory Turnover Choose Numerator: Choose Denominator: Inventory Turnover Inventory turnover times times Required 38 > . 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. Required 3A Required 3B For each ratio, determine if it improved or worsened in the current year. Inventory turnover