Required information Exercise 13-8 (Algo) Analyzing and interpreting liquidity LO P3 [Alternate Version] [The following information applies to the questions displayed below] Simon Company's year-end balance sheets follow. 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 Common stock, $10 par value Retained earnings Total liabilities and equity Current Year 1 Year Ago 2 Years Ago $ 27,416 89,200 115,000 8,829 228,929 $469,374 $ 115,705 87,360 162,500 103,809 $ 469,374 $32,047 $ 33,382 62,500 51,200 83,500 53,000 8,412 218,174 $ 404,633 $ 67,699 92,135 162,500 82,299 $ 404,633 3,709 199,309 $340,600 $ 44,510 74,520 162,500 59,070 $340,600 The company's income statements for the current year and one 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 Earnings per share Current Year $ 610,186 $ 372,213 189,158 10,373 7,932 579,676 $ 30,510 $1.88 1 Year Ago $ 481,513 $ 312,983 121,823 11,075 7,223 453,104 $ 28,409 $ 1.75 Exercise 13-8 (Algo) Part 4 [Alternate Version] (4-a) Compute days' sales in inventory. (4-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 4A Required 48 Compute days' sales in inventory. Current Year: 1 Year Ago: Days' Sales In Inventory Numerator: 7 Denominator:: M Days Days' Sales In Inventory Days' sales in inventory days days