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Required information [The following information applies to the questions displayed below.] Simon Companys year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago
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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 | $ | 35,819 | $ | 41,869 | $ | 42,331 | |||||
Accounts receivable, net | 89,600 | 62,300 | 51,000 | ||||||||
Merchandise inventory | 113,500 | 84,000 | 52,000 | ||||||||
Prepaid expenses | 11,535 | 10,991 | 4,703 | ||||||||
Plant assets, net | 344,743 | 313,941 | 269,166 | ||||||||
Total assets | $ | 595,197 | $ | 513,101 | $ | 419,200 | |||||
Liabilities and Equity | |||||||||||
Accounts payable | $ | 151,168 | $ | 88,448 | $ | 56,441 | |||||
Long-term notes payable secured by mortgages on plant assets | 114,135 | 120,373 | 94,496 | ||||||||
Common stock, $10 par value | 162,500 | 162,500 | 162,500 | ||||||||
Retained earnings | 167,394 | 141,780 | 105,763 | ||||||||
Total liabilities and equity | $ | 595,197 | $ | 513,101 | $ | 419,200 | |||||
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 | $ | 773,756 | $ | 610,590 | ||||||||
Cost of goods sold | $ | 471,991 | $ | 396,884 | ||||||||
Other operating expenses | 239,864 | 154,479 | ||||||||||
Interest expense | 13,154 | 14,044 | ||||||||||
Income tax expense | 10,059 | 9,159 | ||||||||||
Total costs and expenses | 735,068 | 574,566 | ||||||||||
Net income | $ | 38,688 | $ | 36,024 | ||||||||
Earnings per share | $ | 2.38 | $ | 2.22 | ||||||||
Earnings per share $ 2.38 $ 2.22 Part 2 of 4 (2-a) Compute accounts receivable turnover. (2-b) For each ratio, determine if it improved or worsened in the current year. 2.14 points Complete this question by entering your answers in the tabs below. eBook Required 2A Required 2B Hint Compute accounts receivable turnover. Print References Accounts Receivable Turnover Choose Numerator: 1 Choose Denominator: Accounts Receivable Turnover Accounts receivable tumover times Current Yr: 1 Yr Ago: times Required 2A Required 2B >
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