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 $ 29,791 $ 34,823 $ 36, 274 89,300 62,100 54,700 113,000 84,500 59,000 9,594 9,141 4,830 268, 343 249,115 216,096 $ 510,828 $ 439,679 $ 370,100 $ 125,7275 23,563 $ 48,365 94,926 109,115 80,974 162,500 162,500 162,500 126,875 103,501 78,261 $ 510,828 439,579 $ 370,100 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 $ 663,035 404,452 205,541 11,272 8.619 629,884 $ 33,152 5 2.04 2016 $ 523,218 5 348,092 132, 374 12,034 Z. 848 492,345 $ 30,870 $ Exercise 13-8 Part 2 Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity 94,926 100, 115 80,974 162,500 162,500 162,500 126,875 103,501 78,261 $ 510,028 $ 439,679 5 370,100 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 $ 663,036 $ 404,452 205,541 11,272 8,619 629,884 $ 33,152 5 2.04 2016 $ 523,218 $ 340,092 132,374 12,034 2,848 492,348 30,870 $ 1.99 3 Exercise 13-8 Part 2 (2) Compute accounts receivable turnover Answer is complete but not entirely correct. Choose Numerator: Net sales Accounts Receivable Iumove Choose Denominator Average accounts receivable net S 125,727 15 62.100 5 2017: 2016: Accounts Receivable Turnover Accounts receivable turnover 5.3 times 84 fines 663 036 523.218 $ 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-ters notes payable secured by mortgages on plant assets Common stock, 510 par value et sind earnings Total liabilities and equity $ 29.7915 34,823 36,274 09.30 62.10 54, 113,00 30,5 59,00 9.59 9.141 4, eje 249.2015 215,096 $ 510,628 5 439,679 $ 370,10 $ 125,727 73,5635 48,365 94,920 180, 115 89,974 162,50 162,50 162.500 126,873 103 501 78.261 $ 510,820 5 499.679 $ 370,100 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 3663,036 $ 406.452 295.561 11,272 8,619 629 884 S 33,15) 2.04 2016 $ 523,218 $ 340,092 132.374 12,014 $ $ 20,80 1.90 Exercise 13-8 Part 3 Ich Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity 94,926 109,115 88,974 162,500 162,500 162,500 126,875 183,501 78,261 $ 519,028 $ 439,679 $ 370,100 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 Cast of goods sold other operating expenses Interest expense Income taxes Total costs and expenses Net Income Earnings per share 2017 $ 663,036 $ 404,452 205,541 11,272 8,619 629,884 $ 33,152 $ 2.64 2016 $ 523,218 $ 34e, e92 132,374 12,834 2,848 492,348 $ 38,878 5 1.99 Exercise 13-8 Part 3 (3) Compute inventory turnover. > Answer is not complete. Choose Numerator: Cast of goods sold 404 452 Inventory Turnover Choose Denominator Average inventory 5 241,685 2017: 2016: Inventory Turnover Inventory turnover 1.7 times 0 times mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity 94,926 100115 38,974 162,500 162/5 162,500 126,875 193 78,261 $ 510,028 $ 439,679 370,100 The company's income statements for the years ended December 31, 2017 and 2016, follow. Assume that all sales are on credit: 2016 $ 52,218 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 $ 663,036 404.452 205,541 11,272 8,619 629,884 $ 33,152 2.4 $ 340,092 132,374 12,034 7,848 492,34 $ 30,878 $ 1.90 Exercise 13-8 Part 4 (4) Compute days' sales in inventory Choose Numerator: Days Sales In Inventory Choose Denominator Days X 2017: 2016: Days' Sales In Inventory Days' sales in inventory O days 0 days