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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
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 | 2 Yrs Ago | ||||||||
Assets | |||||||||||
Cash | $ | 34,016 | $ | 39,762 | $ | 42,272 | |||||
Accounts receivable, net | 89,200 | 63,000 | 50,600 | ||||||||
Merchandise inventory | 113,000 | 83,500 | 58,000 | ||||||||
Prepaid expenses | 10,954 | 10,437 | 4,697 | ||||||||
Plant assets, net | 347,206 | 315,694 | 284,631 | ||||||||
Total assets | $ | 594,376 | $ | 512,393 | $ | 440,200 | |||||
Liabilities and Equity | |||||||||||
Accounts payable | $ | 143,560 | $ | 83,997 | $ | 56,363 | |||||
Long-term notes payable secured by mortgages on plant assets | 108,390 | 114,315 | 94,366 | ||||||||
Common stock, $10 par value | 162,500 | 162,500 | 162,500 | ||||||||
Retained earnings | 179,926 | 151,581 | 126,971 | ||||||||
Total liabilities and equity | $ | 594,376 | $ | 512,393 | $ | 440,200 | |||||
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 | $ | 772,689 | $ | 609,748 | ||||||||
Cost of goods sold | $ | 471,340 | $ | 396,336 | ||||||||
Other operating expenses | 239,534 | 154,266 | ||||||||||
Interest expense | 13,136 | 14,024 | ||||||||||
Income tax expense | 10,045 | 9,146 | ||||||||||
Total costs and expenses | 734,055 | 573,772 | ||||||||||
Net income | $ | 38,634 | $ | 35,976 | ||||||||
Earnings per share | $ | 2.38 | $ | 2.21 | ||||||||
(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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