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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 Year

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[The following information applies to the questions displayed below.]

Simon Companys year-end balance sheets follow.

At December 31 Current Year 1 Year Ago 2 Years Ago
Assets
Cash $ 32,238 $ 37,683 $ 38,476
Accounts receivable, net 89,400 62,500 50,500
Merchandise inventory 111,500 82,500 54,000
Prepaid expenses 10,382 9,892 4,275
Plant assets, net 297,478 273,803 237,549
Total assets $ 540,998 $ 466,378 $ 384,800
Liabilities and Equity
Accounts payable $ 136,056 $ 79,606 $ 51,302
Long-term notes payable 102,725 108,340 85,891
Common stock, $10 par value 162,500 162,500 162,500
Retained earnings 139,717 115,932 85,107
Total liabilities and equity $ 540,998 $ 466,378 $ 384,800

The company’s income statements for the current year and one year ago follow. Assume that all sales are on credit:

For Year Ended December 31 Current Year 1 Year Ago
Sales $ 703,297 $ 554,990
Cost of goods sold $ 429,011 $ 360,744
Other operating expenses 218,022 140,412
Interest expense 11,956 12,765
Income tax expense 9,143 8,325
Total costs and expenses 668,132 522,246
Net income $ 35,165 $ 32,744
Earnings per share $ 2.16 $ 2.02

(1-a) Compute days' sales uncollected.

(1-b) For each ratio, determine if it improved or worsened in the current year.

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