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Simon Companys year-end balance sheets follow. At December 31 Current Year 1 Year Ago 2 Years Ago Assets Cash $ 35,076 $ 41,000 $ 41,452
Simon Companys year-end balance sheets follow.
At December 31 | Current Year | 1 Year Ago | 2 Years Ago |
---|---|---|---|
Assets | |||
Cash | $ 35,076 | $ 41,000 | $ 41,452 |
Accounts receivable, net | 89,300 | 62,800 | 50,900 |
Merchandise inventory | 113,000 | 83,000 | 59,000 |
Prepaid expenses | 11,296 | 10,763 | 4,606 |
Plant assets, net | 334,172 | 304,889 | 254,542 |
Total assets | $ 582,844 | $ 502,452 | $ 410,500 |
Liabilities and Equity | |||
Accounts payable | $ 148,031 | $ 86,613 | $ 55,270 |
Long-term notes payable | 111,766 | 117,875 | 92,535 |
Common stock, $10 par value | 162,500 | 162,500 | 162,500 |
Retained earnings | 160,547 | 135,464 | 100,195 |
Total liabilities and equity | $ 582,844 | $ 502,452 | $ 410,500 |
The company’s 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 | $ 757,697 | $ 597,918 | ||
Cost of goods sold | $ 462,195 | $ 388,647 | ||
Other operating expenses | 234,886 | 151,273 | ||
Interest expense | 12,881 | 13,752 | ||
Income tax expense | 9,850 | 8,969 | ||
Total costs and expenses | 719,812 | 562,641 | ||
Net income | $ 37,885 | $ 35,277 | ||
Earnings per share | $ 2.33 | $ 2.17 |
(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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