Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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,

image text in transcribed

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 Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity Current Year 1 Year Ago 2 Years Ago $ 35,118 89,200 114,000 11,309 333,927 $ 583,554 $ 148,211 111,902 162,500 160,941 $ 583,554 $ 41,050 62,700 82,500 10,776 306,038 $ 503,064 $ 86,718 118,019 162,500 135,827 $ 503,064 $ 41,503 50,000 55,000 4,611 259,886 $ 411,000 $ 55,337 92,648 162,500 100,515 $ 411,000 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 $ 758,620 $ 462,758 235,172 12,897 9,862 1 Year Ago $ 598,646 $ 37,931 $ 2.33 $ 389,120 151,457 13,769 8,980 563,326 $ 35,320 $2.17 720,689 (4-a) Compute days' sales in inventory. (4-b) For each ratio, determine if it improved or worsened in the current year.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Accounting

Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng

11th edition

538480289, 978-0538480284

More Books

Students also viewed these Accounting questions

Question

appreciate the strategic importance of supplier development;

Answered: 1 week ago