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 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 2017 201 2015 $ 31,800 35,625 37,800 89,50062,500 50,200 112, 50082,500 54,000 5,000 278,500255,000 230,500 $523,000 $445,000 $377,500 10,700 9,375 $129,900 s 75,250 51,250 mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity 98,500 101,500 83,500 163,500 163,500 163,500 131,100104,750 79,250 $523,000 $445,000 $377,500 The company's income statements for the years ended December 31, 2017 and 2016, follow. Assume that all sales are on credit 2017 2016 $673,500 s 532,000 Sales Cost of goods sold Other operating expenses Interenst expense Income taxes Total costs and expenses Net income $411,225 209,550 12,100 9,525 $345, 500 134,980 13,300 8,845 642,400 31,100 $ 1.90 502,625 s 29,375 $ 1.80 Earnings per share Exercise 13-8 Part 1 1) Compute days' sales uncollected. Choose Numerator Choose Denominator Days = Days' Sales Uncollected | Days' Sales Uncollected 2017 0 days 0 days 2016 Exercise 13-8 Part 2 (2) Compute accounts recelvable turnover. Accounts Receivable Turnover / Choose Denominator Choose Numerator: Accounts Receivable Turnover Accounts receivable turnover imes times 2017: 2016 Exercise 13-8 Part 3 (3) Compute inventory turnover Inventory Turnover Choose Numerator: Choose Denominator: Inventory Turnover # | 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 x DaysDays Sales In Inventory Days' sales in inventory 2017 days 2016: days