Exercise 17-8 Liquidity analysis and interpretation LO P3 [The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. 2017 2016 2015 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 secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 27,625 $ 32,291 $ 32,647 89,400 62,800 50, 400 112,000 84,000 54,000 8,896 8,476 3,627 221,113 208, 152 182,626 $ 459,034 $ 395,719 $ 323, 300 $ 116,585 $ 68,214 $ 43,529 88,024 92,836 72,878 162,500 162,500 162,500 91,925 72,169 44,393 $ 459,034 $ 395,719 $ 323, 300 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 Sales Cost of goods sold Other operating expenses Interest expense Income taxes Total costs and expenses Net income 2017 $ 596,744 $ 364,014 184,991 10,145 7,758 566,908 $ 29,836 $ 1.84 2016 $ 470,906 $ 306,089 119,139 10,831 7,064 443,123 $ 27,783 $ 1.71 Earnings per share Exercise 17-8 Part 3 (3) Compute inventory turnover. Inventory Turnover Choose Numerator: | Choose Denominator: Il = = = Inventory Turnover Inventory turnover / = II 2017: II = times 2016: = times Exercise 17-8 Part 4 (4) Compute days' sales in inventory. Days' Sales In Inventory. Choose Numerator: 1 Choose Denominator: Days II = Days' Sales In Inventory / = 2017: = Days' sales in inventory 0 days o days 2016: =