Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PLEASE help 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

PLEASE help
image text in transcribed
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 $ 31,880 89,500 112,500 10,700 278,580 $ 523,000 $ 35,625 62,500 82,500 9,375 255,000 $ 445,000 $ 37,800 50,200 54,000 5,000 238,500 $ 377,500 $ 129,900 98,500 163,500 131, 100 $ 523,000 $ 75,250 101,500 163,500 184,758 $ 445,000 $ 51, 250 83,500 163,500 79,250 $ 377,500 For both the current year and one year ago, compute the following ratios. The company's income statements for the current year and one year ago follow. Assume that all sales are For Year Ended December 31 Current Year 1 Year Ago Sales $ 673,500 $ 532,000 Cost of goods sold $ 411,225 $ 345,580 Other operating expenses 209,550 134,980 Interest expense 12,100 13,300 Income tax expense 9,525 8,845 Total costs and expenses 642,400 502,625 Net income $ 31,100 $ 29,375 Earnings per share $ 1.90 (1-0) Compute days' sales uncollected. (1-b) Determine if days' sales uncollected improved or worsened in the current year 18e (2-6) Compute accounts receivable tumover. (2-6) Determine if accounts receivable turnover ratio improved or worsened in the current year (3-6) Compute inventory turnover (3-6) Determine if inventory turnover ratio improved or worsened in the current year (4-a) Compute days' sales in inventory (4-6) For each ratio, determine if days' sales in inventory improved or worsened in the current yean

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Payroll Accounting

Authors: Bernard J. Bieg, Judith A. Toland

2013 edition

113396253X, 978-1133962533

More Books

Students also viewed these Accounting questions