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: Current Yr $ 680,456 $ 415,078 210,941 11,568 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 1 Yr Ago $ 536,965 $ 349,027 135,852 12,350 8,054 505,283 $ 31,682 $ 1.95 34,023 2.09 Exercise 13-8 Part 2 (2-a) Compute accounts receivable turnover. (2-b) For each ratio, determine if it improved or worsened in the current year