Question 5:

[The following information appir'es to the questions displayed Detour} Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash 35 30,427 $ 35,566 $ 37,048 Accounts receivable, net 89,700 62,100 51,500 Merchandise inventory 111,000 84,000 54,000 Prepaid expenses 9,798 9,336 4.116 Plant assets, net 279,989 253,062 231,336 Total assets 55 520,914 $ 449,064 $ 378,000 Llabilltles and Equity Accounts payable :5 123,411 $ 75,133 $ 49,397 Longrterm notes payable secured by mortgages on plant assets 96,953 102,252 82,703 Common stock, $10 par value 162,500 162,500 162,500 Retained earnings 133,050 109,179 83,400 Total liabilities and equity 55 520,914 $ 449,064 $ 378,000 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 Current Yr 1 Yr Ago Sales $ 677,188 $ 534,386 Cost of goods sold 35 413,085 $ 347,351 Other operating expenses 209,928 135,200 Interest expense 11,512 12,291 Income tax expense 8,803 8.016 Total costs and expenses 643,328 502,858 Net income $ 33,860 $ 31,528 Earnings per share $ 2.08 $ 1.94 5 , Award; 2.14 points (2-a) Compute accounts receivable turnover. (2-b) For each ratio. determine it it improved or worsened in the current year. Complete this question by entering your answers In the tabs below. Required 2A Required EB Compute accounts receivable turnover. Accounts receivable turnover Current Yr: = times = times Required 2B > References Expanded table Difficulty: 3 Hard Learning Objective: 177P3 Define and apply ratio analysis