Exercise 13-8 Liquidity analysis and interpretation Lo P3 The following information applies to the questions displayed below] Simon Company's year-end balance sheets follow. At 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 $ 31 8003 625 37.8ee 89 5ee62 500,200 112 50082500 54,009 9 325 278 s00 255 enel230,500 10 700 5:000 $523 000 $A45 00 377,580 $129,900 s 75,250 s s1.250 mortgages on plant assets Common stock, $10 par value Retained earnings Total 1iabilities and equity 98,500 101,58883, 500 163,500163,500163) 580 131 109 14 50 129 250 $523 00 $445,000 $ 377,500 The company's income statements for the years ended December 31, 2017 and 2016, follow. Assume that all sales are on credit Sales Cost of goods sold Other operating expenses Interest expense Income taxes Total costs and expenses Net income $673,580 s 532,88e $411,225 209,550 12,180 9,525 345,589 134,988 13,388 8,845 642,408 31,188 $ 1.98 582,625 29,375 Earnings per share $ 1.86e Exercise 13-8 Part 2 (2) Compute accounts receivable turnover Accounts Receivable Turnover Accounts receivable turnover times times Choose Numerator: Choose Denominator 2017 2016 Exercise 13-8 Part 3 (3) Compute inventory turnover Inventory Tunover Choose Denominator Choose Numerator: Inventory Turnover Inventory turnover times 2017: 2016: times (4) Compute days' sales in inventory. Days' Sales In Inventory x DaysDays' Sales In Inventory Days' sales in inventory Choose Numerator: Choose Denominator: 2017: 2016: 0 days 0 days