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need help with the following turnovers & day sales in inventory Required information Exercise 13-8 (Static) Analyzing and interpreting liquidity LO P3 (Alternate Version] [The
need help with the following turnovers & day sales in inventory
Required information Exercise 13-8 (Static) Analyzing and interpreting liquidity LO P3 (Alternate Version] [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 $ 31,800 89,500 112,500 19,700 278,500 $ 523, eee $ 35,625 62,500 82,500 9,375 255, eee $ 445,000 $ 37,800 5e, 2ee 54, eee 5,000 230,500 $ 377,500 $ 129,900 98,580 163,500 131, 100 $ 523, eee $ 75,250 101,5ee 163,500 104,750 $ 445,000 $ 51,25 83,500 163,500 79,250 $ 377,500 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 $ 673,5ee $ 532, Bee Cost of goods sold $ 411,225 $ 345,500 Other operating expenses 209,55e 134,989 Interest expense 12,1ee 13,30 Income tax expense 9,525 8,845 Total costs and expenses 642,480 502,625 Net income $ 31,100 $ 29,375 $ 1.80 $ 1.90 Earnings per share Exercise 13-8 (Static) Part 2 (Alternate Version) Compute accounts receivable turnover. Accounts Receivable Turnover Numerator: Denominator Net sales Average accounts receivable, not Current Year: $ 673,500 $ 44,750 - 1 Year Ago: $ 532,000 $ 62,500 - Reould 2A Required 2B > Accounts Receivable Turnover Accounts receivable turnover 15.1 imes 8.5 times Compute inventory turnover. Inventory Turnover Numerator: Denominator: Cost of goods sold 1 Average inventory $ 411,225 $ 56,250 $ 345,500 Inventory Turnover Inventory turnover 7.3 times Current Year: 1 Year Ago: 0 times Reorired 3A Required 3B Compute days' sales in inventory. Numerator: Days' Sales In Inventory Denominator: Ending inventory Days Net sales x x Days' Sales In Inventory Days' sales in inventory 0 days 0 days X Current Year: 1 Year Ago: x Regu Required 4B > Step by Step Solution
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