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 $ 35,887 89,300 112,500 11,557 347,089 $ 596,333 $ 41,949 $ 42,412 62,600 51,300 82,000 52,000 11, 012 4,712 316 519 269,576 $ 514,080 $ 420,000 $ 151,457 S88,617 $ 56,549 114,353 162,500 168,023 $ 596,333 120,603 94,676 162,500 162,500 142,360 106,275 $ 514,080 $420,000 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 tlet income Earnings per share Current Yr $775,233 $ 472,892 240, 322 13,179 10,028 736,421 $ 38,762 $ 2.39 1 Yr Ago $ 611,755 $ 397,641 154,774 14,079 9,176 575,561 5 36,094 $ (3-0) 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 Compute inventory turnover. Inventory. Turnover Choose Numerator: 1 Choose Denominator: Inventory Turnover Inventory turnover Current Yr: 1 Yr Ago: timos times Required SA Required 3B > Required 3A Required 3B For each ratio, determine if it improved or worsened in the current year. Inventory turnover Exercise 13-8 Part 4 (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 48 Compute days' sales in inventory Days! Sales In Inventory Choose Denominator Choose Numerator: 7 X Days X Current Yr: 1 Yr Ago: Days' Sales In Inventory Days' sales in inventory days days X Required 4A Required 4B For each ratio, determine if it improved or worsened in the current year. Days' sales in inventory