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 $ 30,448 91,886 112,097 10,210 287,381 $ 532,022 $ 37,792 66,136 84,000 9,728 260,984 $ 458,640 $ 37,838 49,441 53, 187 4,162 237,572 $ 382,200 $ 131,149 98,020 162,500 140,353 $ 532,022 $ 76,735 103,377 163,500 115,028 $ 458,640 $ 49,946 82,777 163,500 85,977 $ 382,200 For both the current year and one year ago, compute the following ratios: 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 $ 691,629 $ 421,894 214,405 11,758 8,991 657,048 $ 34,581 1 Year Ago $ 545,782 $ 354,758 138,083 12,553 8,187 513,581 $ 32,201 $ 1.98 $ 2.13 (4-a) Compute days' sales in inventory. (4-b) For each ratio, determine if days' sales in inventory improved or worsened in the current year. Complete this question by entering your answers in the tabs below. Required 1A Required 18 Required 2A Required 2B Required 3A Required 3B Required 4A Required 4B Compute days' sales in inventory. 1 Numerator: Ending inventory Days 365 1 Days' Sales In Inventory Denominator: Cost of goods sold $ 421,894 S 354,758 = Days' Sales In Inventory Days' sales in inventory days days Current Year: 1 Year Ago: 1 1