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