Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image

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 $ 36,484 50,300 Current Year 1 Year Ago 2 Years Ago $ 30,872 89,100 111,500 $ 36,086 62,300 83,000 9,473 251,372 $442,231 9,942 271,574 $ 512,988 $ 130, 289 98,371 162,500 121,828 $ 512,988 $ 76,232 103,747 162,500 99,752 $442,231 58,000 4,054 212,462 $ 361,300 $ 48,645 81,444 162,500 68,711 $ 361,300 The company’s income statements for the current year and one year ago follow. Assume that all sales are 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 $ 666,884 $ 406,799 206,734 11,337 8,669 1 Year Ago $ 526,255 $ 33,345 $ 342,066 133,143 12,104 7,894 633,539 $2.05 495,207 $ 31,048 $ 1.91 (1-a) Compute days' sales uncollected. (1-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 1A Required 1B Compute days' sales uncollected.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Principles

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

9th Edition

978-0470317549, 9780470387085, 047031754X, 470387084, 978-0470533475

More Books

Students also viewed these Accounting questions

Question

Define production and operations management. AppendixLO1

Answered: 1 week ago