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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 $ 37,056 $ 43,315 $ 43,368
Accounts receivable, net 89,500 62,700 51,500
Merchandise inventory 114,000 84,500 57,000
Prepaid expenses 11,933 11,370 4,819
Plant assets, net 357,289 323,786 268,613
Total assets $ 609,778 $ 525,671 $ 425,300
Liabilities and Equity
Accounts payable $ 156,390 $ 91,504 $ 57,824
Long-term notes payable secured by mortgages on plant assets 118,077 124,531 96,811
Common stock, $10 par value 162,500 162,500 162,500
Retained earnings 172,811 147,136 108,165
Total liabilities and equity $ 609,778 $ 525,671 $ 425,300

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 $ 792,711 $ 625,548
Cost of goods sold $ 483,554 $ 406,606
Other operating expenses 245,740 158,264
Interest expense 13,476 14,388
Income tax expense 10,305 9,383
Total costs and expenses 753,075 588,641
Net income $ 39,636 $ 36,907
Earnings per share $ 2.44 $ 2.27

(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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