question 7

[The following information applies to the questions displayed below} Simon Company's year-end balance sheets followt At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 30,427 $ 35,555 $ 37,045 Accounts receivable, net 39,700 52,100 51,500 Merchandise inventory 111,000 84,000 54,000 Prepaid expenses 9,798 9,336 4,116 Plant assets, net 279,989 258,062 231,336 Total assets 35 520,914 $ 449,054 $ 378,000 Liabilities and Equity Accounts payable :5 128,411 $ 75,133 $ 49,397 Longeterrn notes payable secured by mortgages on plant assets 95,953 102,252 32,703 Common stock, $10 par value 152,500 152,500 152,500 Retained earnings 133,050 109,179 83,400 Total liabilities and equity $ 520,914 $ 449,054 $ 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 25 413,085 $ 347,351 Other operating expenses 209,923 135,200 Interest expense 11,512 12,291 Income tax expense 8,803 8,016 Total costs and expenses 643,328 502,858 Net income $ 33,360 $ 31,528 Earnings per share $ 2.08 $ 1.94 7_ Award 2.14 points (4a) Compute days' sales in inventory. (4-D) 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 4A Required 48 Compute davs' sales in inventory. Days' sales in inventory Current Yr: x = days x = days Ftequiled 43 > References Expanded table Difficulty: 3 Hard Learning Olljectlve l7-P3 Deflrle and priy mun analysis