! Required information Exercise 13-8 Liquidity analysis and interpretation LO P3 [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow At December 31 2017 2016 2015 Assets Cash $28,527$ 33,345 $ 34,735 Accounts receivable, net 89,600 62,200 53,400 Merchandise inventory Prepaid expenses 84,000 113,500 55,000 9,187 8,753 232,729 3,859 Plant assets, net 247,577 207,406 $ 488,391 $421,027 $ 354,400 Total assets Liabilities and Equity Accounts payable $ 120,393 $ 46,313 70,442 $ Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings 90,899 95,868 77,539 162,500 162,500 162,500 114,599 92,217 68,048 $ 488,391 $ 421,027 $ 354,400 Total liabilities and equity The company's income statements for the years ended December 31, 2017 and 2016, follow. Assume that all sales are on credit: For Year Ended December 31 2017 2016 $ 501,022 Sales $634,908 $387,294 $325,664 Cost of qoods sold Other operating expenses 196,821 126,759 Interest expense 10,793 11,524 8,254 7,515 Income taxes Total costs and expenses 603,162 471,462 $ 29,560 31,746 Net income 1.95 1.82 Earnings per share Exercise 13-8 Part 1 (1) Compute days' sales uncollected. Days' Sales Uncollected Choose Denominator: Choose Numerator: Days Days' Sales Uncollected = Days' Sales Uncollected X 2017 / O days X 0 days 2016: X Exercise 13-8 Part 2 (2) Compute accounts receivable turnover. Accounts Receivable Turnover IChoose Denominator: Choose Numerator: Accounts Receivable Turnover Accounts receivable turnover 2017 times 2016: times Exercise 13-8 Part 3 (3) Compute inventory turnover. Inventory Turnover IChoose Denominator: Inventory Turnover Choose Numerator: Inventory turnover = 2017: times = 2016: times Exercise 13-8 Part 4 (4) Compute days' sales in inventory. Days' Sales In Inventory Choose Numerator: Choose Denominator: Days Days' Sales In Inventory X Days' sales in inventory / X days 2017: X - 2016 days X