! Required information [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. Current Year 1 Year Ago 2 Years Ago 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 Common stock, $10 par value Retained earnings Total liabilities and equity $ 33,831 89, 100 113,500 10,895 343, 809 $ 591,135 $ 39,545 62,500 82,000 10, 381 315, 173 $ 509,599 $ 42,042 50,300 51,000 4,671 289,787 $ 437,800 $ 142,777 107,799 162,500 178,059 $ 591,135 $ 83,539 113,692 162,500 149,868 $ 509,599 $ 56,056 93,851 162,500 125,393 $ 437,800 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 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Earnings per share Current Year $ 768, 476 $ 468,770 238,228 13,064 9,990 730,052 $ 38,424 $ 2.36 1 Year Ago $ 606,423 $ 394,175 153,425 13,948 9,096 570,644 $ 35,779 $ 2.20 (4-a) Compute days' sales in inventory. (4-6) For each ratio, determine if it improved or worsened in the current year. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 4A Required 4B Compute days' sales in inventory. Days' Sales In Inventory. Denominator: X Days Days' Sales In Inventory Days' sales in 365 = Numerator: Average X inventory $ 97,750 X $ 66,500 X Cost of goods sold $ 468,770 inventory Current Year: 365 76.1 days 1 Year Ago: $ 394,175 X 365 = 61.6 days