Required information Exercise 17-8 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 $ 34,634 $ 40,484 $ 43,041 89,700 62,900 51,200 110,500 83,500 56,000 11,153 10,627 4,782 359,191 324, 194 293, 177 $ 605,178 $ 521,705 $ 448,200 At December 31 Assets Cash Accounts receivable, not 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 $ 146,169 $ 85,523 $ 57,388 110,360 116,392 96,081 162,500 162,500 162,500 186,149 157,290 132,231 $ 605,178 $ 521,705 $ 448,200 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 por share 2017 $ 786,731 $ 479,906 243,887 13,374 10,228 747,395 $ 39,336 $ 2.42 2016 $ 620,829 $ 403,539 157,070 14,279 9.312 584,200 $ 36,629 $ 2.25 (1) Compute days' sales uncollected. Days Sales Uncollected Choose Denominator: Choose Numerator: * Days - Daye' Sales Uncollected Daye' Sales Uncollected days days 2017: X 2016: x (2) Compute accounts receivable turnover. Accounts Recevable Turnover Choose Denominator Choose Numerator Accounts Receivable Turnover Accounts receivable turnover times times 2017: 2016: (3) Compute inventory turnover. Inventory Turnover 1 Choose Denominator: Choose Numerator: / 11 Inventory Turnover Inventory turnover times 2017: 1 11 2016: 11 times (4) Compute days' sales in inventory. Days' Sales In Inventory Choose Numerator: Choose Denominator: Days Days' Sales In Inventory Days' sales in inventory days days 2017: 1 x 2016: 1 X