Exercise 17-8 Liquidity analysis and interpretation LO P3

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[The following information applies to the questions displayed below.] Simon Companys year-end balance sheets follow.

At December 31	2017			2016			2015
Assets
Cash	$	37,248		$	43,539		$	44,456
Accounts receivable, net		89,400			62,200			50,500
Merchandise inventory		112,500			82,500			53,000
Prepaid expenses		11,995			11,429			4,940
Plant assets, net		373,929			339,187			291,704
Total assets	$	625,072		$	538,855		$	444,600
Liabilities and Equity
Accounts payable	$	157,199		$	91,977		$	59,274
Long-term notes payable secured by mortgages on plant assets		118,689			125,176			99,239
Common stock, $10 par value		162,500			162,500			162,500
Retained earnings		186,684			159,202			123,587
Total liabilities and equity	$	625,072		$	538,855		$	444,600

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				$	812,594					$	641,237
Cost of goods sold	$	495,682					$	416,804
Other operating expenses		251,904						162,233
Interest expense		13,814						14,748
Income taxes		10,564						9,619
Total costs and expenses					771,964						603,404
Net income				$	40,630					$	37,833
Earnings per share				$	2.50					$	2.33

Exercise 17-8 Part 1

(1) Compute days' sales uncollected.

Days' Sales Uncollected
	Choose Numerator:	/	Choose Denominator:	x	Days	=	Days' Sales Uncollected
		/		x		=	Days' Sales Uncollected
2017:		/		x		=		days
2016:		/		x		=		days