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		$	32,935			$	38,498		$	38,545
Accounts receivable, net			89,200				62,800			51,100
Merchandise inventory			114,000				85,000			51,000
Prepaid expenses			10,606				10,106			4,283
Plant assets, net			295,220				270,804			233,072
Total assets		$	541,961			$	467,208		$	378,000
Liabilities and Equity
Accounts payable		$	138,997			$	81,327		$	51,393
Long-term notes payable secured by mortgages on plant assets			104,945				110,682			86,044
Common stock, $10 par value			162,500				162,500			162,500
Retained earnings			135,519				112,699			78,063
Total liabilities and equity		$	541,961			$	467,208		$	378,000

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				$	704,549					$	555,978
Cost of goods sold	$	429,775					$	361,386
Other operating expenses		218,410						140,662
Interest expense		11,977						12,787
Income tax expense		9,159						8,340
Total costs and expenses					669,321						523,175
Net income				$	35,228					$	32,803
Earnings per share				$	2.17					$	2.02

Complete this question by entering your answers in the tabs below.

(3-a) Compute inventory turnover. (3-b) For each ratio, determine if it improved or worsened in the current year.

Compute inventory turnover.

Inventory Turnover
	Choose Numerator:	/	Choose Denominator:	=	Inventory Turnover
		/		=	Inventory turnover
Current Yr:		/		=		times
1 Yr Ago:		/		=		times

Compute days' sales in inventory.

Days Sales In Inventory
	Choose Numerator:	/	Choose Denominator:	x	Days	=	Days Sales In Inventory
		/		x		=	Days sales in inventory
Current Yr:		/		x		=		days
1 Yr Ago:		/		x		=		days

Debt Ratio
	Choose Numerator:	/	Choose Denominator:	=	Debt Ratio
		/		=	Debt ratio
Current Year:		/		=		%
1 Year Ago:		/		=		%
Equity Ratio
	Choose Numerator:	/	Choose Denominator:	=	Equity Ratio
		/		=	Equity ratio
Current Year:		/		=		%
1 Year Ago:		/		=		%

Debt-To-Equity Ratio
	Choose Numerator:	/	Choose Denominator:	=	Debt-To-Equity Ratio
		/		=	Debt-to-equity ratio
Current Year:		/		=		to 1
1 Year Ago:		/		=		to 1

Times interest earned.

Times Interest Earned
	Choose Numerator:	/	Choose Denominator:	=	Times Interest Earned
		/		=	Times interest earned
Current Year:		/		=		times
1 Year Ago:		/		=		times

Based on times interest earned, is the company more or less risky for creditors in the Current Year versus 1 Year Ago?

Times interest earned