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Required information Skip to question [The following information applies to the questions displayed below.] Simon Companys year-end balance sheets follow. At December 31 Current Yr

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[The following information applies to the questions displayed below.] Simon Companys year-end balance sheets follow.

At December 31 Current Yr 1 Yr Ago 2 Yrs Ago
Assets
Cash $ 30,974 $ 36,206 $ 37,714
Accounts receivable, net 89,400 62,100 51,200
Merchandise inventory 111,000 85,000 55,000
Prepaid expenses 9,975 9,504 4,190
Plant assets, net 288,936 264,332 236,696
Total assets $ 530,285 $ 457,142 $ 384,800
Liabilities and Equity
Accounts payable $ 130,721 $ 76,484 $ 50,286
Long-term notes payable secured by mortgages on plant assets 98,697 104,091 84,190
Common stock, $10 par value 162,500 162,500 162,500
Retained earnings 138,367 114,067 87,824
Total liabilities and equity $ 530,285 $ 457,142 $ 384,800

The companys income statements for the Current Year and 1 Year Ago, follow. Assume that all sales are on credit:

For Year Ended December 31 Current Yr 1 Yr Ago
Sales $ 689,371 $ 543,999
Cost of goods sold $ 420,516 $ 353,599
Other operating expenses 213,705 137,632
Interest expense 11,719 12,512
Income tax expense 8,962 8,160
Total costs and expenses 654,902 511,903
Net income $ 34,469 $ 32,096
Earnings per share $ 2.12 $ 1.98

(2-a) Compute accounts receivable turnover. (2-b) For each ratio, determine if it improved or worsened in the current year.

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