Exercise 13-8 Liquidity analysis and interpretation LO P3 [The following information applies to the questions displayed below.] Simon Companys year-end balance sheets follow. At December 31 2017 2016 2015 Assets Cash $ 35,636 $ 41,655 $ 41,706 Accounts receivable, net 89,100 62,200 58,200 Merchandise inventory 113,500 84,500 59,000 Prepaid expenses 11,476 10,934 4,634 Plant assets, net 336,696 306,235 245,460 Total assets $ 586,408 $ 505,524 $ 409,000 Liabilities and Equity Accounts payable $ 150,396 $ 87,997 $ 55,608 Long-term notes payable secured by mortgages on plant assets 113,552 119,759 93,101 Common stock, $10 par value 162,500 162,500 162,500 Retained earnings 159,960 135,268 97,791 Total liabilities and equity $ 586,408 $ 505,524 $ 409,000 The companys income statements for the years ended December 31, 2017 and 2016, follow. Assume that all sales are on credit: For Year Ended December 31 2017 2016 Sales $ 762,330 $ 601,574 Cost of goods sold $ 465,021 $ 391,023 Other operating expenses 236,322 152,198 Interest expense 12,960 13,836 Income taxes 9,910 9,024 Total costs and expenses 724,213 566,081 Net income $ 38,117 $ 35,493 Earnings per share $ 2.35 $ 2.18 Exercise 13-8 Part 3 (3) Compute inventory turnover.