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 Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity Current Year 1 Year Ago 2 Years Ago $ 31,800 89,500 112,500 10,700 278,500 $ 523,000 $ 129,900 98,500 163,500 131,100 $ 523,000 $ 35,625 62,500 $ 37,800 82,500 9,375 255,000 $ 445,000 $ 75,250 101,500. 163,500 104,750 $ 445,000 50,200 54,000 5,000 230,500 $ 377,500 $ 51,250 83,500 163,500 79,250 $377,500 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 $ 673,500 $ 411,225 209,550 12,100 9,525 1 Year Ago $ 532,000 642,400 $ 31,100 $ 1.90 $ 345,500 134,980 13,300 8,845 502,625 $ 29,375 $ 1.80 (4-a) Compute days' sales in inventory. (4-b) For each ratio, determine if it improved or worsened in the current year. Complete this question by entering your answers in the tabs below. Required 4A Required 48 Compute days' sales in inventory. Current Year: 1 Year Ago: Days' Sales In Inventory Numerator: Denominator: x Days Days' sales in inventory days X B days