Required information [The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs 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 secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 25,323 89,500 114,500 8,155 204,996 $ 442,474 $ 29,600 $ 31,469 62,900 51,400 83,500 56,000 7,770 3,497 197,673 185,334 $ 381,443 $ 327,700 $ 106,871 $ 62,530 $ 41,959 80,690 162,500 92,413 $ 442,474 85,100 70,249 162,500 162,500 71,313 52,992 $ 381,443 $ 327, 700 The company's income statements for the Current Year and 1 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 Yr $ 575,216 $ 350,882 178, 317 9,779 7,478 546, 456 $ 28,760 $ 1.77 1 Yr Ago $ 453,917 $ 295,046 114,841 10, 440 6,809 427,136 $ 26,781 $ 1.65 2-a) Compute accounts receivable turnover. 2-b) For each ratio, determine if it improved or worsened in the current year. Complete this question by entering your answers in the tabs below. Required 2A Required 2B Compute accounts receivable turnover. Accounts Receivable Turnover 1 Choose Denominator: Choose Numerator: - = Accounts Receivable Turnover Accounts receivable turnover times Current Yr: 1 Yr Ago: times Required 2A Required 2B > (2-a) Compute accounts receivable turnover. (2-b) For each ratio, determine if it improved or worsened in the current year. Complete this question by entering your answers in the tabs below. Required 2A Required 2B For each ratio, determine if it improved or worsened in the current year. Accounts receivable turnover Required 2A Required 2B (3-a) Compute inventory turnover. (3-b) For each ratio, determine if it improved or worsened in the current year. Complete this question by entering your answers in the tabs below. Required 3A Required 3B Compute inventory turnover. Choose Numerator: Inventory Turnover 7 Choose Denominator: = Inventory Turnover Inventory turnover times Current Yr: 1 Yr Ago: times Required 3A Required 3B > (3-a) Compute inventory turnover. (3-b) For each ratio, determine if it improved or worsened in the current year. Complete this question by entering your answers in the tabs below. Required 3A Required 3B For each ratio, determine if it improved or worsened in the current year. Inventory turnover Required 3A Required 3B (4-a) Compute days' sales in inventory. (4-6) For each ratio, determine if it improved or worsened in the current year. Complete this question by entering your answers in the tabs below. Required 4A Required 4B Compute days' sales in inventory. Choose Numerator: Days' Sales In Inventory. 1 Choose Denominator: X Days - = Days' Sales In Inventory Days' sales in inventory o days 0 days Current Yr: 1 Yr Ago: 1 x Required 4A Required 4B > (4-a) Compute days' sales in inventory. (4-b) For each ratio, determine if it improved or worsened in the current year. Complete this question by entering your answers in the tabs below. Required 4A Required 4B For each ratio, determine if it improved or worsened in the current year. Days' sales in inventory Required 4A Required 4B >
