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 Assets Cash Accounts receivable, net Nerchandise inventory Prepaid expenses Plant assets, net Total assets $25,396 $ 29,685 30,922 89,90063,000 57,000 110,500 84,000 60,000 8,1787,7923,436 200,810 190,337 164,142 $ 434,784 $374,814 $ 315,500 Liabilities and Equity Accounts payable Long-tern notes payable secured by 107,179 5 62,710 $ 41,230 mortgages on plant assets Common stock, $10 par value 80,922 85,34569,028 162,500162,500 162,500 84,183 64,259 42,742 434,784 $374,814 $ 315,500 Total liabilities and equity 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 565,219 446,029 344,784 175,218 9,609 7,348 $289,919 112,845 10,259 Net income Earnings per share S 28,260 $26,316 ti 1.62 0060600 Exercise 13-8 Part 1 (1) Compute days' sales uncollected Days' Sales Uncollectesd Choose Numerator xDays Days Sales U Days' Sales 2017 o days o days 2016 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 2017201620 At Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets $ 25,396 29,685 $ 30,922 89,900 63,000 57,000 110,500 84,000 60,000 3,436 200,810 190,337164,142 $434,784 $374,814 $315,500 8,178 7,792 Liabilities and Equity Accounts payable Long-term notes payable secured by 107,179 62,710 41,230 mortgages on plant assets Common stock, $10 par value 80,922 85,345 69,028 162,500 162,500 162,500 84.183 64,259 42,742 $ 434,784 $374,814 $ 315,500 Total'liabilities and equity The company's 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 $565, 219 446,029 Sales Cost of goods sold Other operating expenses Interest expense Income taxeS Total costs and expenses Net income s 289,919 112, 845 10,259 6,690 $ 344,784 175,218 9, 609 7,348 536,959 $ 28,260 $1.74 419,713 $ 26,316 $ 1.62 Earnings per share Exercise 13-8 Part 3 (3) Compute inventory turnover Inventory Turnover Choose Numerator: Choose Denominator: Inventory tunover times 2017 times