Simon Company's year-end balance sheets follow. At December 31 Assets Current Year 1 Year Ago 2 Years Ago Cash Accounts receivable, net $ 34,089 89,700 $ 39,847 $ 41,507 62,800 113,500 Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable 10,978 335,350 83,000 10,460 307,011 $ 583,617 $ 503,118 $ 143,867 Long-term notes payable Common stock, $10 par value Retained earnings 108,623 162,500 168,627 $ 84,177 114,560 141,881 Total liabilities and equity $ 583,617 $ 503,118 162,500 50,100 60,000 4,612 267,281 $ 423,500 $ 55,343 92,658 162,500 112,999 $ 423,500 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 Net income Earnings per share Current Year $ 758,702 $ 462,808 235,198 12,898 9,863 1 Year Ago $ 598,710 720,767 $ 37,935 $ 2.33 $ 389,162 151,474 13,770 8,981 563,387 $ 35,323 $ 2.17 (4-a) Compute days' sales in inventory. (4-b) For each ratio, determine if it improved or worsened in the current year.