Exercise 17-8 (Algo) Analyzing and interpreting liquidity LO P3

! Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below) Simon Company's year-end balance sheets follow. Current Year 1 Year Ago 2 Years 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 Common stock, $10 par value Retained earnings Total liabilities and equity $ 27,086 80,090 99,701 13,635 248,212 $ 463,724 $ 31,661 56,526 72,477 8,311 230,787 $ 399,762 $ 32,314 43,085 46,827 3,776 210,498 $ 336,500 $ 115,467 85,437 163,500 99,320 $ 463,724 $ 66,209 92,865 162,500 78,188 $ 399,762 $ 43,974 73,623 162,500 56,403 $ 336,500 For both the current year and one year ago, compute the following ratios Exercise 17-8 (Algo) Analyzing and interpreting liquidity LO P3 The company's income statements for the current year and one year ago follow. Assume that all sales are on credit For Year Ended December 31 Current Year 1 Year Ago Sales $ 602,841 $475, 717 Cost of goods sold $ 367,733 $ 309,216 Other operating expenses 186,881 120,356 Interest expense 19,248 19,941 Income tax expense 7,837 7,136 Total costs and expenses 572,699 447,649 Net Income $ 30,142 $ 28,068 Earnings per share $ 1.85 $ 1.73 (1-0) Compute days' sales uncollected (1-6) Determine if days' sales uncollected improved or worsened in the current year. (2-a) Compute accounts receivable turnover (2.b) Determine if accounts receivable turnover ratio improved or worsened in the current year. (3-a) Compute Inventory tumover (3-6) Determine if inventory turnover ratio improved or worsened in the current year. (4-6) Compute days' sales in inventory (4-6) For each ratio determine if days' sales in inventory improved or worsened in the current year Required information Required 1A Required 18 Required 2A Required 28 Required 3A Required 3B Required 4A Required 48 Compute accounts receivable tumover. (Round your answers to the nearest whole number.) Numerator: Net sales $ Accounts Receivable Tumover Denominator: Average accounts receivable, net 602,841 68,408 - 475.717 Accounts Receivable Turnover Accounts receivable turnover 8.8 times Current Year: 1 Year Ago: S 0 times - ' CA A An CIAAA , I Required information An Cnos CIMCHID NA fumma Annoncanh cmn naidun your WE . Required 1A Required 1B Required 2A Required 2B Required 3A Required 38 Required 4A Required 48 Compute inventory turnover. (Round your answers to the nearest whole number.) Inventory Turnover Numerator: Denominator: Inventory Tumover Inventory turnover Current Year: 0 times 1 Year Ago: 1 Otimes