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 $ 30,596 89, 200 112,500 9,853 271, 293 $513,442 $ 35,764 $ 36,516 62,300 51,000 84,500 56,000 9,388 4,057 250, 670 217,627 $ 442,622 $ 365,200 $ 129, 126 $ 75,551 $ 48,688 97, 492 162,500 124,324 $513,442 102,821 162,500 101,750 $ 442,622 81,516 162,500 72,496 $ 365,200 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 $ 667, 475 $ 407,160 206,917 11,347 8,677 634,101 $ 33,374 1 Yr Ago $ 526,720 $ 342, 368 133,260 12,115 7,901 495,644 $ 31,076 $ 2.05 $ 1.91 (3-a) 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 3B Compute inventory turnover. Inventory Turnover | Choose Denominator: Choose Numerator: Inventory Turnover Average inventory I Cost of goods sold Inventory turnover Current Yr: $ 407,160 0.3 times 112,500 1 | $ 84,500 / $ 1 Yr Ago: $ 342,368 0.2 times (4-a) Compute days' sales in inventory. (4-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 4A Required 4B Compute days' sales in inventory. Days' Sales In Inventory. Choose Denominator: Choose Numerator: 1 Days Days' Sales In Inventory Days' sales in inventory Current Yr: II days days 1 Yr Ago: 1