Question
Simon Companys year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 31,775 $ 37,142 $ 38,303
Simon Companys year-end balance sheets follow.
At December 31 | Current Yr | 1 Yr Ago | 2 Yrs Ago | ||||||||
Assets | |||||||||||
Cash | $ | 31,775 | $ | 37,142 | $ | 38,303 | |||||
Accounts receivable, net | 89,100 | 62,600 | 50,900 | ||||||||
Merchandise inventory | 111,000 | 84,500 | 54,000 | ||||||||
Prepaid expenses | 10,233 | 9,750 | 4,256 | ||||||||
Plant assets, net | 296,457 | 270,288 | 239,441 | ||||||||
Total assets | $ | 538,565 | $ | 464,280 | $ | 386,900 | |||||
Liabilities and Equity | |||||||||||
Accounts payable | $ | 134,103 | $ | 78,463 | $ | 51,071 | |||||
Long-term notes payable secured by mortgages on plant assets | 101,250 | 106,784 | 85,505 | ||||||||
Common stock, $10 par value | 162,500 | 162,500 | 162,500 | ||||||||
Retained earnings | 140,712 | 116,533 | 87,824 | ||||||||
Total liabilities and equity | $ | 538,565 | $ | 464,280 | $ | 386,900 | |||||
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 | $ | 700,135 | $ | 552,493 | ||||||||
Cost of goods sold | $ | 427,082 | $ | 359,120 | ||||||||
Other operating expenses | 217,042 | 139,781 | ||||||||||
Interest expense | 11,902 | 12,707 | ||||||||||
Income tax expense | 9,102 | 8,287 | ||||||||||
Total costs and expenses | 665,128 | 519,895 | ||||||||||
Net income | $ | 35,007 | $ | 32,598 | ||||||||
Earnings per share | $ | 2.15 | $ | 2.01 | ||||||||
(1-a) Compute days' sales uncollected. (1-b) For each ratio, determine if it improved or worsened in the current year.
(2-a) Compute accounts receivable turnover. (2-b) For each ratio, determine if it improved or worsened in the current year.
(3-a) Compute inventory turnover. (3-b) For each ratio, determine if it improved or worsened in the current year. (4-a) Compute days' sales in inventory. (4-b) For each ratio, determine if it improved or worsened in the current year.
(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. Days' Sales Uncollected 1 Choose Denominator: Choose Numerator: Days Days' Sales Uncollected Days' Sales Uncollected Current Yr: 0 days 0 days 1 Yr Ago: x (2-a) Compute accounts receivable turnover. (2-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 2A Required 2B Compute accounts receivable turnover. Accounts Receivable Turnover Choose Numerator: 1 Choose Denominator: = Accounts Receivable Turnover Accounts receivable turnover times 11 Current Yr: 1 Yr Ago: times (3-a) Compute inventory turnover. (3-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 3A Required 3B Compute inventory turnover. Inventory Turnover Choose Numerator: Choose Denominator: = = Inventory Turnover Inventory turnover times 11 Current Yr: 1 Yr Ago: 11 times Complete this question by entering your answers in the tabs below. Required 4A Required 4B Compute days' sales in inventory. Days' Sales In Inventory. 1 Choose Denominator: Choose Numerator: Days X 11 Days' Sales In Inventory Days' sales in inventory 0 days 0 days X Current Yr: 1 Yr Ago:Step by Step Solution
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