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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

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 $ 35,940 $ 42,011 $ 43,761
Accounts receivable, net 89,000 62,600 51,100
Merchandise inventory 110,000 83,500 57,000
Prepaid expenses 11,574 11,028 4,862
Plant assets, net 368,799 331,303 289,777
Total assets $ 615,313 $ 530,442 $ 446,500
Liabilities and Equity
Accounts payable $ 151,681 $ 88,748 $ 58,349
Long-term notes payable secured by mortgages on plant assets 114,522 120,782 97,690
Common stock, $10 par value 162,500 162,500 162,500
Retained earnings 186,610 158,412 127,961
Total liabilities and equity $ 615,313 $ 530,442 $ 446,500

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 $ 799,907 $ 631,226
Cost of goods sold $ 487,943 $ 410,297
Other operating expenses 247,971 159,700
Interest expense 13,598 14,518
Income tax expense 10,399 9,468
Total costs and expenses 759,911 593,983
Net income $ 39,996 $ 37,243
Earnings per share $ 2.46 $ 2.29

(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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