Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Posting again, please answer thank you Required Information Exercise 13-8 Analyzing and interpreting liquidity LO P3 [The following information applies to the questions displayed below.]

image text in transcribedimage text in transcribedPosting again, please answer thank youimage text in transcribedimage text in transcribed

Required Information Exercise 13-8 Analyzing and interpreting liquidity LO P3 [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs 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 secured by mortgages on plant assets Common stock, $ie par value Retained earnings Total liabilities and equity $ 27,812 89, 180 110,500 8,956 244,635 $ 481,803 $ 32,589 $ 34,209 63,800 50,280 83,500 58,000 8,534 3,881 227,115 206, 390 $ 414,658 $352,600 $ 117, 374 $ 68,676 $ 45,612 88,620 162,500 112,5e9 $ 481,803 93,464 76,366 162,500 162,5ee 90,918 68,122 $ 414,658 $352,680 The company's income statements for the current Year and 1 Year Ago, follow. Assume that all sales are on credit: For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Current Yr $ 625,384 $ 381,435 193,844 10,630 8, 129 594,838 $ 31, 266 1 Yr Ago $493,443 $ 320,738 124,841 11,349 7,482 464,330 $ 29,113 $ 1.79 Earnings per share $ 1.92 Exercise 13-8 Part 2 (2-a) Compute accounts receivable turnover. (2-6) For each ratio, determine if it improved or worsened in the current year. Complete this question by entering your answers in the tabs below. Required 2A Required 28 Compute accounts receivable turnover. Accounts Receivable Turnover Accounts Receivable Turnover Choose Numerator: Net sales Accounts receivable turnover 1 Choose Denominator: 1 Average accounts receivable, net 625,304 / S 76,050 493,4431 Current Yr: S = 8.2 times 1 Yr Ago: S 0 times (2-0) Compute accounts receivable turnover. (2-6) For each ratio, determine if it improved or worsened in the current year. Complete this question by entering your answers in the tabs below. Required 2A Required 28 For each ratio, determine if it improved or worsened in the current year. Accounts receivable turnover Worsened Exercise 13-8 Part 3 (3-a) Compute inventory turnover. (3-6) For each ratio, determine if it improved or worsened in the current year. Complete this question by entering your answers in the tabs below. Required 3A Required 38 For each ratio, determine if it improved or worsened in the current year. Inventory turnover Worsened

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

Students also viewed these Accounting questions

Question

How do you create a dropdown menu using CSS ?

Answered: 1 week ago

Question

a. Draw a line graph of the pmf of X in Exercise

Answered: 1 week ago