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. 2017 2016 2015 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 $ 36,519 $ 42,688 $ 43,586 89,100 62,300 58,700 113,500 82,500 50,000 11,760 11,205 4,843 361,962 329,618 278,771 $ 612,841 $ 528,311 $ 435,900 $ 154,123 $ 90,177 $ 58,114 116,366 122,727 97, 297 162,500 162,500 162,500 179,852 152,907 117,989 $ 612,841 $ 528,311 $ 435,909 The company's income statements for the years ended December 31, 2017 and 2016, follow. Assume that all sales are on credit Prev 1 2 3 4 of 11 H Next The company's income statements for the years ended December 31, 2017 and 2016, follow. Assume that all sales are on credit 5628,690 For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income taxes Total costs and expenses Net Income 2017 796,693 485,983 246,935 13,544 $ 488,649 159,059 14,450 591,598 37,092 $ Earnings per share Exercise 13-8 Part 1 Exercise 13-8 Part 1 (1) Compute days' sales uncollected Days' Sales Uncollected Choose Denominator: Choose Numerator: * Days - Days" Sales Uncollected Days' Sales Uncollected 2017: 2016: 2 1 x x Odays 0 days Exercise 13-8 Part 2 (2) Compute accounts receivable turnover. Accounts Receivable Turnover y Choose Denominator: Choose Numerator: Accounts Receivable Turnover Accounts receivable turnover E 2017: 2016: Exercise 13-8 Part 3 (3) Compute inventory turnover. Inventory Turnover Choose Denominator: Choose Numerator: Inventory Turnover Inventory turnover times 2017: 2016: times Exercise 13-8 Part 4 (4) Compute days' sales in inventory Days' Sales In Inventory Choose Denominator: Choose Numerator: Days = = Days' Sales In Inventory Days' sales in inventory 0 days 2017: 2016: 0 days