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 $ 25,772 89,400 112,500 8,299 200,839 $ 436,810 $ 30,125 $ 31,066 62,700 50,200 82,000 53,000 7,908 3,452 193, 827 176,082 $ 376,560 $ 313,800 $ 108,766 $ 63,639 $ 41,422 82,120 162,500 83,424 $436,810 86,609 69,350 162,500 162,500 63,812 40,528 $ 376,560 $ 313,800 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 $ 567,853 $ 346,390 176,034 9,654 7,382 539,460 $ 28,393 1 Yr Ago $ 448,106 $ 291, 269 113,371 10,306 6,722 421,668 $ 26, 438 Earnings per share $ 1.75 $ 1.63 Exercise 13-8 Part 1 (1-a) Compute days' sales uncollected. (1-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 1A Required 1B Compute days' sales uncollected. Choose Numerator: Days' Sales Uncollected | Choose Denominator: / Days = Days's Days's = Current Yr: X = 1 Yr Ago: 1 = For each ratio, determine if it improved or worsen es Days' sales uncollected (2-a) Compute accounts receivable turnover. (2-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 2A Required 2B Compute accounts receivable turnover. Accounts Receivable Turnover Choose Numerator: / Choose Denominator: Accounts Receivable Turnover / = Accounts receivable turnover Current Yr: / = times 1 Yr Ago: 1 = times For each ratio, determine if it improved or worsened in the current year. Accounts receivable turnover Complete this question by entering your answers in the tabs below. Required 3A Required 3B For each ratio, determine if it improved or worsened in the current year. 5 Inventory turnover