question 6

[The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 30,427 $ 35,566 $ 37,048 Accounts receivable, net 39,700 62,100 51,500 Merchandise inventory 11,000 34,000 54,000 Prepaid expenses 9,798 9,336 4,116 Plant assets, net 279,989 258,062 231,336 Total assets 520,914 449,064 378,000 Liabilities and Equity Accounts payable 128,411 75,133 $ 49,397 Long-term notes payable secured by mortgages on plant assets 96,953 02,252 82,703 Common stock, $10 par value 62,500 162,500 62,50 Retained earnings 133,050 109,179 83,40 Total liabilities and equity 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 $ 413,085 347,351 Other operating expenses 209,928 35,20 nterest 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 6. Award: 2.14 points (3-a) Compute inventory turnover. (3-b) 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 3B Compute inventory turnover. Inventory Turnover Choose Numerator: / Choose Denominator: = 1 Inventory Turnover Inventory turnover Current Yr: times 1 Yr Ago times Required 3A Required 3B > References Expanded table Difficulty: 3 Hard Learning Objective: 17-P3 Define and apply ratio analysis