Required Information Use the following information for the Exercises below. (Algo) [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 $ 27,930 82,619 107,026 9,180 261,280 $ 498,035 $ 33, 658 57,723 78, 612 8,570 242, 157 $ 420,720 $ 35,056 46,279 50,283 3,779 215, 203 $ 350, 600 $ 125, 166 91,751 162,500 108,618 $ 488,035 $ 70, 391 93,863 162,500 93,966 $ 420, 720 $ 45,816 75,158 163,500 66, 126 $ 350, 600 Exercise 17-8 (Algo) Analyzing and interpreting liquidity LO P3 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 Current Year $ 634, 446 $ 387,012 196, 678 10,786 1 Year ago $ 500, 657 $ 325,427 126, 666 11,515 7,510 471, 118 $ 29, 539 602, 724 $ 31,722 Net income Earnings per share $ 1.95 $ 1.82 (1-a) Compute days' sales uncollected. (1-1) Determine if days' sales uncollected Improved or worsened in the current year. (2-a) Compute accounts recelvable turnover. (2-b) Determine if accounts receivable turnover ratio Improved or worsened in the current year. (3-a) Compute Inventory turnover. (3-b) Determine if Inventory turnover ratio Improved or worsened in the current year. (4-a) Compute days' sales In Inventory. (4-6) For each ratlo, determine if days' sales In Inventory Improved or worsened in the current year. Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2B Required 3A Required 3B Required 4A Required 4B Compute days' sales uncollected. Days' Sales Uncollected Denominator: Numerator: Days = Days' Sales Uncollected Days' sales uncollected X Current Yr: = days 1 Yr Ago: days Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2B Required 3A Required 3B Required 4A Required 4B Compute days' sales uncollected. Days' Sales Uncollected Denominator: Numerator: Days = Days' Sales Uncollected Days' sales uncollected X Current Yr: = days 1 Yr Ago: days Complete this question by entering your answers in the tabs below. Required 1A Required 18 Required 2A Required 2B Required 3A Required 3B Required 4A Required 48 Compute accounts receivable turnover. (Round your answers to the nearest whole number.) Accounts Receivable Turnover Numerator: 1 Denominator: 1 Accounts Receivable Turnover Accounts receivable turnover times Current Yr: / 1 Yr Ago: 1 times Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2B Required 3A Required 38 Required 4A Required 48 Compute inventory turnover. (Round your answers to the nearest whole number.) Inventory Turnover 1 Denominator: Numerator: 1 = Inventory Turnover Inventory turnover times Current Yr: / 1 Yr Ago: 1 times Required 1A Required 1B Required 2A Required 2B Required 3A Required 3B Required 4A Required 4B Compute days' sales in inventory. Days' Sales In Inventory Denominator: Numerator: 1 Days 1 Days' Sales In Inventory Days' sales in inventory days Current Yr: 1 1 Yr Ago: 1 days
