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 Yr 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 $ 30,265 89,500 112,500 9,746 281, 417 $523,428 $ 35,377 $ 37,227 62,900 51,800 84,000 55,000 9,286 4,136 259, 668 235, 537 $ 451,231 $ 383, 700 $127,727 $ 74,733 $ 49,635 96,436 162,500 136,765 $523,428 101,707 83,102 162,500 162,500 112,291 88,463 $ 451,231 $ 383,700 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 $ 680,456 $ 536,965 Cost of goods sold $ 415,078 $ 349,027 Other operating expenses 210,941 135, 852 Interest expense 11,568 12,350 Income tax expense 8,846 8,054 Total costs and expenses 646,433 505,283 Net income $ 34,023 $ 31,682 Earnings per share $ 2.09 $ 1.95 Exercise 13-8 Part 3 (3-a) Compute inventory turnover. (3-6) For each ratio, determine if it improved or worsened in the current year