Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help! will thumbs up! The company's income statements for the current year and one year ago follow. Assume that all sales are on credit:

please help! will thumbs up!
image text in transcribed
image text in transcribed
image text in transcribed
The company's income statements for the current year and one year ago follow. Assume that all sales are on credit: For both the current year and one year ago, compute the following ratios: (1-a) Compute days' sales uncollected. (1-b) Determine if days' sales uncollected improved or worsened in the current year. (2-a) Compute accounts receivable turnover. (2-b) Determine if accounts receivable turnover ratio improbed or worsened in the current year. (3-a) Compute inventory turnover. (3-b) Determine if inventory turnover ratio improved or worsened in the current year. (4-a) Compute days' sales in inventory. (4-b) For each ratio, determine if days' sales in inventory improved or worsened in the current year. Navigation: 1. Use the Open Excel in New Tab button to launch this question. 2. When finished in Excel, use the Save and Return to Assignment button in the lower right to return to Connect. Simon Company's year-end balance sheets follow. \begin{tabular}{lrrr} At December 31 & Current Year & 1 Year Ago & 2. Years Ago \\ Assets & $31,800 & $35,625 & $37,800 \\ Cash & 89,500 & 62,500 & 50,200 \\ Accounts receivable, net & 112,500 & 82,500 & 54,000 \\ Merchandise inventory & 10,700 & 9,375 & 5,000 \\ Prepaid expenses & 278,500 & 255,000 & 230,500 \\ Plant assets, net & $523,000 & $445,000 & $377,500 \\ Total assets & & & \\ Liabilities and Equity & 129,900 & $75,250 & $51,250 \\ Accounts payable & 163,500 & 101,500 & 83,500 \\ Long-term notes payable & 131,100 & 163,500 & 163,500 \\ Common stock, \$10 par value & $523,000 & $445,000 & $377,500 \\ Retained earnings & & & 79,250 \\ \hline Total 1iabilities and equity & & \end{tabular} The company's income statements for the current year anone year ago follow. Assume that all sales are on credit: Clybourd A1. f. Accessibility tab summary: Information about Simon Company is provided in rows 2 to 31 . A statement for student presentation is

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

Contemporary Auditing

Authors: Michael C. Knapp

8th edition

978-0538466790, 538466790, 978-1285066608

More Books

Students also viewed these Accounting questions

Question

10.3 Describe the key elements of problemsolving meetings

Answered: 1 week ago