Required information [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current Year 1 Year Ago 2 Years Ago $ 23,360 89,200 $ 27,306 62,300 112,000 7,523 176,094 83,500 7,168 171,603 $ 351,877 $ 408,177 Accounts payable $ 98,587 Long-term notes payable Common stock, $10 par value Retained earnings $ 57,683 78,504 162,500 53,190 Total liabilities and equity 74,435 162,500 72,655 $ 408,177 $ 351,877 $ 29,030 51,500 59,000 3,226 159,544 $ 302,300 $ 38,706 64,804 162,500 36,290 $ 302,300 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 $ 530,630 $ 323,684 164,495 9,021 6,898 1 Year Ago $ 418,734 $ 26,532 $ 1.63 $ 272,177 105,940 9,631 6,281 394,029 $ 24,705 $ 1.52 504,098 (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 Compute days' sales in inventory. Current Year: 1 Year Ago: Numerator: I Days' Sales In Inventory Denominator: x Days = Days' Sales In Inventory x = Days' sales in inventory x = 0 days 0 days < Required 4A Required 4B > Required information [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Current Year 1 Year Ago 2 Years Ago $ 31,746 56,116 $ 32,401 $ 26,610 77,124 97,968 8,569 254,693 75,637 8,249 229,083 $ 400,831 $ 464,964 $ 113,461 Long-term notes payable Common stock, $10 par value 88,287 162,500 100,716 Total liabilities and equity $ 464,964 $ 400,831 Retained earnings $ 66,386 94,957 162,500 76,988 43,646 46,473 3,749 211,131 $ 337,400 $ 44,982 76,802 162,500 53,116 $ 337,400 The company's income statements for the current year and one year ago, follow. 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 $ 604,453 $ 368,716 187,380 574,230 10,276 7,858 $ 30,223 $ 1.86 1 Year Ago $ 476,989 $ 310,043 120,678 10,971 7,155 448,847 $ 28,142 $ 1.73 (1) Compute debt and equity ratio for the current year and one year ago. Current Year: 1 Year Ago: Current Year: 1 Year Ago: Debt Ratio Numerator: Denominator: = Debt Ratio i = Debt ratio = % % Equity Ratio Numerator: Denominator: Equity Ratio = Equity ratio = % = %