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 $ 31,534 $36,861 $ 37,636 89, 200 62,700 50,900 114,500 82,500 51,000 10,155 9,676 4,182 283,800 264,460 232,682 $529, 189 $ 456,197 $376,400 $133,086 $ 77,868 $ 50,182 100,482 162,500 133, 121 $529, 189 105,975 84,016 162,500 162,500 109,854 79,702 $ 456,197 $ 376,400 The company's income statements for the Current Year and 1 Year Ago, follow. Assume that all sale For Year Ended December 31 Current Yr 1 Yr Ago Sales $ 687,946 $ 542,874 Cost of goods sold $ 419,647 $ 352,868 Other operating expenses 213,263 137, 347 Interest expense 11,695 12,486 Income tax expense 8,943 8,143 Total costs and expenses 653,548 510,844 Net income $ 34,398 $ 32,830 Earnings per share 2.12 $ 1.97 cercise 13-8 Part 3 Exercise 13-8 Part 3 (3-a) Compute inventory turnover. (3-6) 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 3A Required 3B Compute inventory turnover. Inventory Turnover Choose Numerator: 1 Choose Denominator: 11 Inventory Turnover Inventory turnover 11 aces Current Yr: + times 1 Yr Ago: 11 times Required 3A Required 3B > Required 4A Required 4B Compute days' sales in inventory Days! Sales In Inventory Choose Denominator: Choose Numerator: 1 Days 1 Days' Sales In Inventory Days' sales in inventory days days 1 Current Yr: 1 Yr Ago: X 1 X Henrad Required 40 >