Exercise 17 8 Liquidity analysis and interpretation LO P3 Skip to question The following information applies to the questions displayed below Simon Companys year end balance sheets follow At December 31 2017 2016 2015 Assets Cash $ 26,292 $ 30,733 $ 31,072 Accounts receivable, net 89,500 62,300 55,500 Merchandise inventory 114,500 84,500 57,000 Prepaid expenses 8,467 8,067 3,452 Plant assets, net 198,126 191,025 160,676 Total assets $ 436,885 $ 376,625 $ 307,700 Liabilities and Equity Accounts payable $ 110,960 $ 64,923 $ 41,429 Long term notes payable secured by mortgages on plant assets 83,777 88,356 69,362 Common stock, $10 par value 162,500 162,500 162,500 Retained earnings 79,648 60,846 34,409 Total liabilities and equity $ 436,885 $ 376,625 $ 307,700 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 $ 567,951 $ 448,184 Cost of goods sold $ 346,450 $ 291,320 Other operating expenses 176,065 113,391 Interest expense 9,655 10,308 Income taxes 7,383 6,723 Total costs and expenses 539,553 421,742 Net income $ 28,398 $ 26,442 Earnings per share $ 1 75 $ 1 63 (1) Compute days' sales uncollected Days' Sales Uncollected Choose Numerator 1 Choose Denominator x Days X II Days' Sales Uncollected Days' Sales Uncollected 0 days 0 days 2017 2016 (2) Compute accounts receivable turnover Choose Numerator Accounts Receivable Turnover 1 Choose Denominator 1 Il Accounts Receivable Turnover Accounts receivable turnover times times 2017 2016 1 (3) Compute inventory turnover Choose Numerator Inventory Turnover 1 Choose Denominator Inventory Turnover Inventory turnover II 2017 II times 2016 Il times (4) Compute days' sales in inventory Choose Numerator Days Days' Sales In Inventory 1 Choose Denominator 1 X 1 Il Days' Sales In Inventory Days' sales in inventory o days 0 days 2017 2016 Il

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Exercise 17-8 Liquidity analysis and interpretation LO P3 Skip to question [The following information applies to the questions displayed below.] Simon Companys year-end balance sheets

Exercise 17-8 Liquidity analysis and interpretation LO P3

Skip to question

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

At December 31	2017		2016		2015
Assets
Cash	$	26,292	$	30,733	$	31,072
Accounts receivable, net		89,500		62,300		55,500
Merchandise inventory		114,500		84,500		57,000
Prepaid expenses		8,467		8,067		3,452
Plant assets, net		198,126		191,025		160,676
Total assets	$	436,885	$	376,625	$	307,700
Liabilities and Equity
Accounts payable	$	110,960	$	64,923	$	41,429
Long-term notes payable secured by mortgages on plant assets		83,777		88,356		69,362
Common stock, $10 par value		162,500		162,500		162,500
Retained earnings		79,648		60,846		34,409
Total liabilities and equity	$	436,885	$	376,625	$	307,700

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			$	567,951			$	448,184
Cost of goods sold	$	346,450			$	291,320
Other operating expenses		176,065				113,391
Interest expense		9,655				10,308
Income taxes		7,383				6,723
Total costs and expenses				539,553				421,742
Net income			$	28,398			$	26,442
Earnings per share			$	1.75			$	1.63

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(1) Compute days' sales uncollected. Days' Sales Uncollected Choose Numerator: 1 Choose Denominator: x Days / X II Days' Sales Uncollected Days' Sales Uncollected 0 days 0 days 2017: / 2016: = (2) Compute accounts receivable turnover. Choose Numerator: Accounts Receivable Turnover 1 Choose Denominator: 1 Il = Accounts Receivable Turnover Accounts receivable turnover times times 2017: = 2016: 1 = (3) Compute inventory turnover. Choose Numerator: Inventory Turnover 1 Choose Denominator: / Inventory Turnover Inventory turnover II 2017: II times 2016: Il times (4) Compute days' sales in inventory. Choose Numerator: Days = Days' Sales In Inventory 1 Choose Denominator: 1 X 1 Il Days' Sales In Inventory Days' sales in inventory o days 0 days 2017: 2016: Il