Required information [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. Current Year 1 Year Ago 2 Years Ago 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 $ 25,863 89,500 114,000 8,329 205,085 $ 442,777 $ 30,231 62,600 82,000 7,936 198,937 $ 381,704 $ 31,491 51,800 59,000 3,499 175,510 $ 321,300 $ 109, 149 82,410 162,500 88,718 $ 442,777 $ 63,863 86,914 162,500 68,427 $ 381,704 $ 41,987 70,297 162,500 46,516 $ 321,300 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 $ 575,610 $ 351,122 178,439 9,785 7,483 546,829 $ 28,781 1 Year Ago $ 454,228 $ 295,248 114,920 10,447 6,813 427,428 $ 26,800 $ 1.65 $ 1.77 (3-a) Compute inventory turnover. (3-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 3A Required 3B Compute inventory turnover. Inventory Turnover 1 Denominator: Numerator: 11 Inventory Turnover Inventory turnover times times 1 II Current Year: 1 Year Ago: 1 II Required 3A Required 3B > Required 3A Required 3B For each ratio, determine if it improved or worsened in the current year. Inventory turnover