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 1 abilities and equity $ 31,800 89,500 112,500 10,700 278,500 $ 523,000 $ 35,625 $ 37,800 '62,500 50,200 82,500 54,000 9,375 5.000 255,000 230, 500 $ 445,000 $ 377,500 $ 129,900 $ 75,250 $ 51,250 98,500 163,500 131, 100 $ 523,000 101,500 83,500 163,500 163,500 104,750 79,250 5445,000 $377,500 The company's income statements for the Current Year and 1 Year Ago, follow. Assume that all sales are on credit: For Your Ended December 31 Sales cost of goods sold Other operating expenses Interest expenso Income tax expense Total costs and expenses Net Income Current Y $673,500 $ 411,225 209,550 12,100 9,525 642,400 $ 31,100 1.90 1 Yr Ago $ 532,000 $345,500 134,980 13,300 B,845 502,625 $ 29,375 1.80 Earninge per share Exercise 13-8 Part 2 (2-a) Compute accounts receivable turnover. (2-6) For each ratio, determine if it improved or worsened in the current year. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 2A Required 28 Compute accounts receivable turnover, Choose Numerator: Cont of goods sold IS $ Accounts Receivable Turnover Choose Denominator: / Average accounts receivable, not 411.225 $ 97,500 345,500 / $ 68,250 - Accounts Receivable Turnover Accounts receivable tumover 4.2 times 5.1 times Current Yr: 1 Yr Ago: Regum B Required 28 >