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 $ 32,230 $ 37,673 $ 39,243 89,400 62,800 50, 100 115,000 82,000 58,000 10,3799 ,889 4,360 304,774 283,313 248, 697 $ 551,783 $ 475,675 $ 400,400 $ 136,020 $ 79,585 $ 52,324 102,698 108,311 87,604 162,500 162,500 162,500 150,565 125,279 97,972 $ 551,783 $ 475,675 $ 400,400 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 Sales Cost of goods sold Other operating expenses Interest expense Income taxes Total costs and expenses Net income Earnings per share 2017 $ 717,318 $ 437,564 222,369 12,194 9,325 681,452 $ 35,866 $ 2.21 2016 $ 566,053 $ 367,934 143,211 13,019 8,491 532,655 $ 33,398 $ 2.06 Exercise 13-8 Part 1 (1) Compute days' sales uncollected Days' Sales Uncollected Choose Denominator: Choose Numerator: X Days 365 Accounts receivable $ $ 2017: 2016: = Days' Sales Uncollected Days' Sales Uncollected 0 days o days 1 Net sales 89,400 / 62,800 (2) Compute accounts receivable turnover. Choose Numerator: Net sales Accounts Receivable Turnover I Choose Denominator: / Average accounts receivable, net Accounts Receivable Turnover Accounts receivable turnover 0 times 0 times 2017: 2016: (3) Compute inventory turnover. Inventory Turnover I Choose Denominator: Choose Numerator: = Inventory Turnover Inventory turnover times 2017: 2016: times (4) Compute days' sales in inventory. Days' Sales In Inventory Choose Numerator: 1 Choose Denominator: Days Days' Sales In Inventory Days' sales in inventory 2017: days 2016: days