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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 31Current Year1 Year
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[The following information applies to the questions displayed below.]
Simon Companys year-end balance sheets follow.
At December 31Current Year1 Year Ago2 Years AgoAssets Cash$ 33,305$ 38,931$ 41,389Accounts receivable, net89,40062,50050,000Merchandise inventory115,00082,00051,000Prepaid expenses10,72510,2194,599Plant assets, net333,523308,034284,012Total assets$ 581,953$ 501,684$ 431,000Liabilities and Equity Accounts payable$ 140,559$ 82,241$ 55,185Long-term notes payable106,125111,92692,393Common stock, $10 par value162,500162,500162,500Retained earnings172,769145,017120,922Total liabilities and equity$ 581,953$ 501,684$ 431,000The company’s income statements for the current year and one year ago follow. Assume that all sales are on credit:
For Year Ended December 31Current Year1 Year AgoSales $ 756,539 $ 597,004Cost of goods sold$ 461,489 $ 388,053 Other operating expenses234,527 151,042 Interest expense12,861 13,731 Income tax expense9,835 8,955 Total costs and expenses 718,712 561,781Net income $ 37,827 $ 35,223Earnings per share $ 2.33 $ 2.17
(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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