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 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 $ 23,828 $ 27,853 $ 29, 310 89,700 62,300 54,600 112,500 83,500 52,000 7,674 7,311 178,411 174,306 162,933 $ 412,113 $ 355, 270 $ 302,100 $ 100,564 $ 58,840 $ 39,080 75,928 80, 078 65,429 162,500 162,500 162,500 73, 121 53,852 35,091 $ 412, 113 $ 355, 270 $ 302,100 The company's income statements for the years ended December 31, 2017 and 2016, follow. Assume that all sales are on credit: 5,747 2046422,771 For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income taxes Total costs and expenses 2017 $ 535, 747 $ 326,806 166,082 9, 108 2016 $ 422,771 $ 274,801 106,961 9,724 6,342 397,828 6,965 508,961 $ 26,786 Net income Earnings per share $ $ 24,943 1.53 $ 1.65 Exercise 17-8 Part 2 (2) Compute accounts receivable turnover. Choose Numerator: Net sales 2017: $ 2016: $ Accounts Receivable Turnover I Choose Denominator: = Accounts Receivable Turnover 1 Average accounts receivable, net = Accounts receivable turnover 535,747 1 | $ 25,841 = 20.7 times 422,771 $ 57,163 = 7.4 times Exercise 17-8 Part 3 (3) Compute inventory turnover. Inventory Turnover 7 Choose Denominator: Choose Numerator: = Inventory Turnover Inventory turnover times times 2017: 2016: Exercise 17-8 Part 4 (4) Compute days' sales in inventory. Days' Sales In Inventory Choose Numerator: 1 Choose Denominator: ~ Days = Days' Sales In Inventory 2017: 11111 Days' sales in inventory 0 days 0 days 2016