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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 $ 36,427 $ 42,580 $ 43,476
Accounts receivable, net 89,700 62,200 50,200
Merchandise inventory 113,500 84,500 59,000
Prepaid expenses 11,731 11,177 4,831
Plant assets, net 359,936 326,521 277,293
Total assets $ 611,294 $ 526,978 $ 434,800
Liabilities and Equity
Accounts payable $ 153,734 $ 89,950 $ 57,968
Long-term notes payable secured by mortgages on plant assets 116,073 122,417 97,052
Common stock, $10 par value 162,500 162,500 162,500
Retained earnings 178,987 152,111 117,280
Total liabilities and equity $ 611,294 $ 526,978 $ 434,800

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 $ 794,682 $ 627,104
Cost of goods sold $ 484,756 $ 407,618
Other operating expenses 246,351 158,657
Interest expense 13,510 14,423
Income tax expense 10,331 9,407
Total costs and expenses 754,948 590,105
Net income $ 39,734 $ 36,999
Earnings per share $ 2.45 $ 2.28

(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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