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		$	32,717			$	38,243		$	38,665
Accounts receivable, net			89,800				62,300			50,400
Merchandise inventory			114,500				84,000			51,000
Prepaid expenses			10,536				10,039			4,296
Plant assets, net			296,104				274,088			238,539
Total assets		$	543,657			$	468,670		$	382,900
Liabilities and Equity
Accounts payable		$	138,078			$	80,789		$	51,554
Long-term notes payable secured by mortgages on plant assets			104,252				109,950			86,313
Common stock, $10 par value			162,500				162,500			162,500
Retained earnings			138,827				115,431			82,533
Total liabilities and equity		$	543,657			$	468,670		$	382,900

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				$	706,754					$	557,717
Cost of goods sold	$	431,120					$	362,516
Other operating expenses		219,094						141,102
Interest expense		12,015						12,827
Income tax expense		9,188						8,366
Total costs and expenses					671,417						524,811
Net income				$	35,337					$	32,906
Earnings per share				$	2.17					$	2.02

(1-a) Compute days' sales uncollected. (1-b) For each ratio, determine if it improved or worsened in the current year.

Compute days' sales uncollected.

Days' Sales Uncollected
	Choose Numerator:	/	Choose Denominator:	x	Days	=	Days' Sales Uncollected
		/		x		=	Days' Sales Uncollected
Current Yr:		/		x		=		days
1 Yr Ago:		/		x		=		days

For each ratio, determine if it improved or worsened in the current year.

Days' sales uncollected

(2-a) Compute accounts receivable turnover. (2-b) For each ratio, determine if it improved or worsened in the current year.

Compute accounts receivable turnover.

Accounts Receivable Turnover
	Choose Numerator:	/	Choose Denominator:	=	Accounts Receivable Turnover
		/		=	Accounts receivable turnover
Current Yr:		/		=		times
1 Yr Ago:		/		=		times

• For each ratio, determine if it improved or worsened in the current year.

  Accounts receivable turnover

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

For each ratio, determine if it improved or worsened in the current year.

Inventory turnover

(4-a) Compute days' sales in inventory. (4-b) For each ratio, determine if it improved or worsened in the current year.

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

For each ratio, determine if it improved or worsened in the current year.

Days sales in inventory