Question
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,
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 $ 35,240 89,500 $ 41,192 62,100 112,500 83,000 11,349 354,734 $ 603,323 112,290 162,500 179,808 $ 148,725 Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity $ 603,323 10,813 323,001 $520,106 $ 87,019 118,428 162,500 152,159 $520,106 $ 42,909 51,300 52,000 4,768 286,823 $ 437,800 $ 57,212 95,786 162,500 122,302 $ 437,800 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 1 Year Ago $ 784,320 $ 618,926 $ 478,435 $ 402,302 243,139 13,333 10,196 745,103 $ 39,217 156,588 14,235 9,284 582,409 $ 36,517 $ 2.25 $ 2.41 (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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