Required information

Exercise 13-8 Analyzing and interpreting liquidity LO P3

Skip to question

[The following information applies to the questions displayed below.] Simon Companys year-end balance sheets follow.

At December 31	Current Yr					1 Yr Ago			2 Yrs Ago
Assets
Cash		$	32,205			$	37,644		$	38,059
Accounts receivable, net			89,700				62,800			51,600
Merchandise inventory			114,500				84,000			55,000
Prepaid expenses			10,371				9,882			4,229
Plant assets, net			288,362				267,000			228,012
Total assets		$	535,138			$	461,326		$	376,900
Liabilities and Equity
Accounts payable		$	135,914			$	79,523		$	50,746
Long-term notes payable secured by mortgages on plant assets			102,618				108,227			84,961
Common stock, $10 par value			162,500				162,500			162,500
Retained earnings			134,106				111,076			78,693
Total liabilities and equity		$	535,138			$	461,326		$	376,900

The companys 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				$	695,679					$	548,978
Cost of goods sold	$	424,364					$	356,836
Other operating expenses		215,660						138,891
Interest expense		11,827						12,626
Income tax expense		9,044						8,235
Total costs and expenses					660,895						516,588
Net income				$	34,784					$	32,390
Earnings per share				$	2.14					$	1.99

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. Days' Sales Uncollected 1 Choose Denominator: Choose Numerator: Days x Days' Sales Uncollected Days' Sales Uncollected days days / X Current Yr: 1 Yr Ago: 11 Complete this question by entering your answers in the tabs below. Required 1A Required 1B For each ratio, determine if it improved or worsened in the current year. Days' sales uncollected