Requlred Informatlon Exercise 13-8 Liquidity analysis and interpretation LO P3 The following information applies to the questions displayed below. Simon Company's year-end balance sheets follow 201 At December 31 Assets Cash Accounts receivable, net Merchandise inventorv Prepaid expenses Plant assets, net Total assets 2016 2015 31,800 35, 625 37,800 89,500 62,500 50,200 112, 500 82,500 54, 000 5, 000 278,500 255,000 230,500 $523, 000 445,000 377,500 10,700 9,375 Liabilities and Equity Accounts payable Long-term notes payable secured $129,900 75,250 51,250 by mortgages on plant assets Common stock, $10 par value Retained earnings 98,500 101,500 83, 500 163,500 163,500 163, 500 131,100 104,750 79,250 523,000 $445,000 $377,500 Total liabilities and equity The company's income statements for the years ended December 31, 2017 and 2016, follow. Assume that all sales are on credit For Year Ended December 31 Sales Cost of goods sold Other operating expen3es Interest expense Income taxes Total costs and expen3es Net income 2017 2016 $673,500 $532,000 $411,225 209, 550 12,100 9,525 $345,500 134,980 13,300 B, 845 642,400 $ 31,100 $ 1.90 502, 625 $ 29,375 $ 1.80 Earnings per share Exerclse 13-8 Part 3 (3) Compute inventory turnover. Choose Numerator Choose Turnover Inventory turnover 2017 times 2016 times