Exercise 13-8 Analyzing and interpreting liquidity P3 Refer to the Simon Company information in Exercise 13-6. The company's income statements for the current year and one year ago follow. Assume that all sales are on credit and then compute (1) days' sales uncollected, (2) accounts receivable turnover, (3) inventory turnover, and (4) days' sales in inventory. For each ratio, determine if it improved or worsened in the current year. Round to one decimal. For Year Ended December 31 Current Yr 1 Yr Ago $673,500 $532,000 $411,225 $345,500 209,550 134,980 13,300 12,100 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Earnings per share 9,525 8,845 642,400 502,625 $ 31,100 $ 29,375 $ 1.90 $ 1.80 At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 31,800 89,500 $ 35,625 $ 37,800 62,500 50,200 82,500 54,000 112,500 10,700 9,375 5,000 278,500 255,000 230,500 $523,000 $445,000 $445,000 $377,500 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 $ 75,250 $ 51,250 $129,900 98,500 101,500 83,500 163,500 163,500 163,500 131,100 104,750 79,250 $523,000 $445,000 $445,000 $377,500