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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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