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Simon Companys year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 30,201 $ 35,303 $ 37,149
Simon Companys year-end balance sheets follow.
At December 31 | Current Yr | 1 Yr Ago | 2 Yrs Ago | ||||||||
Assets | |||||||||||
Cash | $ | 30,201 | $ | 35,303 | $ | 37,149 | |||||
Accounts receivable, net | 89,700 | 62,600 | 51,700 | ||||||||
Merchandise inventory | 113,500 | 82,500 | 52,000 | ||||||||
Prepaid expenses | 9,726 | 9,267 | 4,128 | ||||||||
Plant assets, net | 279,209 | 260,620 | 237,923 | ||||||||
Total assets | $ | 522,336 | $ | 450,290 | $ | 382,900 | |||||
Liabilities and Equity | |||||||||||
Accounts payable | $ | 127,460 | $ | 74,577 | $ | 49,532 | |||||
Long-term notes payable secured by mortgages on plant assets | 96,235 | 101,495 | 82,928 | ||||||||
Common stock, $10 par value | 162,500 | 162,500 | 162,500 | ||||||||
Retained earnings | 136,141 | 111,718 | 87,940 | ||||||||
Total liabilities and equity | $ | 522,336 | $ | 450,290 | $ | 382,900 | |||||
The companys income statements for the Current Year and 1 Year Ago, follow. Assume that all sales are on credit:
For Year Ended December 31 | Current Yr | 1 Yr Ago | ||||||||||
Sales | $ | 679,037 | $ | 535,845 | ||||||||
Cost of goods sold | $ | 414,213 | $ | 348,299 | ||||||||
Other operating expenses | 210,501 | 135,569 | ||||||||||
Interest expense | 11,544 | 12,324 | ||||||||||
Income tax expense | 8,827 | 8,038 | ||||||||||
Total costs and expenses | 645,085 | 504,230 | ||||||||||
Net income | $ | 33,952 | $ | 31,615 | ||||||||
Earnings per share | $ | 2.09 | $ | 1.95 | ||||||||
(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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