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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
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. Current Year 1 Year Ago 2 Years Ago $ 33,317 89,100 115,000 10,729 328,075 $ 38,945 62,600 85,000 10,223 299,974 $ 496,742 $ 576,221 Common stock, $10 par value Retained earnings $ 140,609 106,163 162,500 166,949 $ 82,270 111,966 162,500 140,006 Total liabilities and equity $ 576,221 $ 496,742 $ 40,981 51,500 60,000 4,553 265,366 $ 422,400 $ 54,642 91,483 162,500 113,775 $ 422,400 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 $749,087 $ 456,943 232,217 12,734 9,738 711,632 $ 37,455 $ 2.30 1 Year Ago $ 591,123 $ 384,230 149,554 13,596 8,867 556,247 $ 34,876 $ 2.15 Exercise 13-8 (Algo) Part 3 [Alternate Version] (3-a) Compute inventory turnover. (3-b) For each ratio, determine if it improved or worsened in the current year.
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