! 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 Y 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, $10 par value Retained earnings Total liabilities and equity $ 35,093 89,500 112,500 11,301 346,408 $594,882 $ 41,021 542,303 62,700 50,800 83,500 52,000 10, 768 4,700 314,771 277,497 $ 512,760 $ 427,300 $148, 106 $ 86,656 $ 56,404 111,823 117,935 94,433 162,500 162,500 162,500 172,373 145, 669 113,963 $594,802 $ 512,760 $ 427,300 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 $ 773,243 $ 471,678 239, 705 13,145 10,052 734,580 $ 38,663 1 Yr Ago $ 610, 184 $ 396,620 154,377 14,034 9,153 574, 184 $ 36,000 Earnings per share $ 2.38 $ 2.22 Exercise 13-8 Part 3 (3-a) Compute Inventory turnover. (3-b) For each ratio, determine if it improved or worsened in the current year. (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: 1 Choose Denominator: Inventory Turnover 1 11 Inventory turnover Current Yr: 1 11 O times 1 Yr Ago: 1 II Otimes