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. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 33,254 $ 38,871 $ 40,904 Accounts receivable, net 89,500 62,100 50,900 Merchandise inventory 111,500 83,500 55,00 Prepaid expenses 10,709 10, 204 4,545 Plant assets, net 330, 167 301, 127 270, 251 Total assets $575, 130 $ 495,882 $ 421,600 Liabilities and Equity Accounts payable $ 140, 343 $ 82,115$ 54,538 Long-term notes payable secured by mortgages on plant assets 105,962 111, 754 91,310 Common stock, $10 par value 162,500 162,500 162,500 Retained earnings 166,325 139,433 113,252 Total liabilities and equity $575, 130 $ 495,892 $ 421,600 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 Earnings per share Current Yr $ 747,669 $ 456,078 231,777 12,719 9,720 719,285 $ 37,384 1 Yr Ago $ 590,894 $ 383,583 149,271 13,578 8,850 555, 194 34,810 $ 2.30 $ 2.14 Exercise 13-8 Part 1 (1-4) Compute days' sales uncollected. (1-6) 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 1A Required 18 Compute days' sales uncollected. Days' Sales Uncollected 1 Choose Denominator: Choose Numerator: X Days = Days' Sales Uncollected Days' Sales Uncollected 0 days 0 days = Current Yr: 1 Yr Ago: = (2-a) Compute accounts receivable turnover. (2-6) 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 2A Required 28 Compute accounts receivable turnover. Accounts Receivable Turnover Choose Numerator: 1 Choose Denominator: Accounts Receivable Turnover 1 = Accounts receivable turnover times Current Yr: 1 Yr Ago: times (3-6) 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 38 Compute inventory turnover. Inventory Turnover Choose Numerator: 1 Choose Denominator: Inventory Turnover Inventory turnover 1 Current Yr: times 1 Yr Ago: times Required 3A Required 3B > (4-6) Compute days' sales in inventory. (4-6) 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 4B Compute days' sales in inventory. Choose Numerator: Days' Sales In Inventory Choose Denominator: x Days = 1 1 / Days' Sales In Inventory Days' sales in inventory 0 days Current Yr: 1 Yr Ago: 1 o days