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 $ 26,582 89,000 112,500 8,560 205,070 $ 441,712 $ 31,072 $ 31,415 62,800 51,100 85,000 50,000 8,156 3,491 193,758 175,094 $ 380,786 $ 311,100 $ 112,186 $ 65,640 $ 41,887 84,703 162,500 82,323 $ 441,712 89,332 70,128 162,500 162,500 63,314 36,585 $ 380,786 $ 311,100 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 $ 574,226 350,278 178,010 9,762 7,465 545,515 $ 28,711 $ 1.77 1 Yr Ago $ 453,135 $ 294,538 114,643 10,422 6,797 426,400 $ 26,735 $ 1.65 (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 Numerator: 7 Choose Denominator: = Inventory Turnover Inventory turnover Current Yr: 1 Yr Ago: 0 times 0 times