Simon Companys year-end balance sheets follow.

At December 31	Current Year	1 Year Ago	2 Years Ago
Assets
Cash	$ 30,634	$ 35,808	$ 36,927
Accounts receivable, net	89,000	62,300	50,400
Merchandise inventory	113,000	83,500	53,000
Prepaid expenses	9,865	9,400	4,103
Plant assets, net	276,717	256,592	228,570
Total assets	$ 519,216	$ 447,600	$ 373,000
Liabilities and Equity
Accounts payable	$ 129,285	$ 75,644	$ 49,236
Long-term notes payable	97,613	102,948	82,433
Common stock, $10 par value	162,500	162,500	162,500
Retained earnings	129,818	106,508	78,831
Total liabilities and equity	$ 519,216	$ 447,600	$ 373,000

For each ratio, determine if it improved or worsened in the current year.

Complete this question by entering your answers in the tabs below.

Compute inventory turnover.

Inventory Turnover
	Numerator:	/	Denominator:	=	Inventory Turnover
		/		=	Inventory turnover
Current Year:		/		=		times
1 Year Ago:		/		=		times

The companys income statements for the current year and one year ago follow. Assume that all sales are on credit:

For Year Ended December 31	Current Year		1 Year Ago
Sales		$ 674,981		$ 532,644
Cost of goods sold	$ 411,738		$ 346,219
Other operating expenses	209,244		134,759
Interest expense	11,475		12,251
Income tax expense	8,775		7,990
Total costs and expenses		641,232		501,219
Net income		$ 33,749		$ 31,425
Earnings per share		$ 2.08		$ 1.93

For each ratio, determine if it improved or worsened in the current year.

Inventory turnover

Compute days' sales in inventory. For each ratio, determine if it improved or worsened in the current year.

Compute days' sales in inventory.

Days Sales In Inventory
	Numerator:	/	Denominator:		Days	=	Days Sales In Inventory
		/				=	Days sales in inventory
Current Year:		/				=		days
1 Year Ago:		/				=		days

For each ratio, determine if it improved or worsened in the current year.

Days sales in inventory