Simon Companys year-end balance sheets follow.

At December 31	Current Yr					1 Yr Ago			2 Yrs Ago
Assets
Cash		$	34,713			$	40,577		$	42,699
Accounts receivable, net			89,100				62,300			50,500
Merchandise inventory			114,000				82,500			54,000
Prepaid expenses			11,179				10,651			4,744
Plant assets, net			351,375				321,530			288,157
Total assets		$	600,367			$	517,558		$	440,100
Liabilities and Equity
Accounts payable		$	146,502			$	85,718		$	56,931
Long-term notes payable secured by mortgages on plant assets			110,612				116,658			95,317
Common stock, $10 par value			162,500				162,500			162,500
Retained earnings			180,753				152,682			125,352
Total liabilities and equity		$	600,367			$	517,558		$	440,100

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				$	780,477					$	615,894
Cost of goods sold	$	476,091					$	400,331
Other operating expenses		241,948						155,821
Interest expense		13,268						14,166
Income tax expense		10,146						9,238
Total costs and expenses					741,453						579,556
Net income				$	39,024					$	36,338
Earnings per share				$	2.40					$	2.24

(2-a) Compute accounts receivable turnover. (2-b) For each ratio, determine if it improved or worsened in the current year.

Compute accounts receivable turnover.

Req2a

Accounts Receivable Turnover
	Choose Numerator:	/	Choose Denominator:	=	Accounts Receivable Turnover
		/		=	Accounts receivable turnover
Current Yr:		/		=		times
1 Yr Ago:		/		=		times

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

Req2b

Accounts receivable turnover