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Simon Companys year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 24,803 $ 28,992 $ 29,898
Simon Companys year-end balance sheets follow.
At December 31 | Current Yr | 1 Yr Ago | 2 Yrs Ago | ||||||||
Assets | |||||||||||
Cash | $ | 24,803 | $ | 28,992 | $ | 29,898 | |||||
Accounts receivable, net | 89,800 | 62,500 | 50,600 | ||||||||
Merchandise inventory | 110,500 | 84,000 | 59,000 | ||||||||
Prepaid expenses | 7,987 | 7,610 | 3,322 | ||||||||
Plant assets, net | 187,294 | 179,298 | 159,180 | ||||||||
Total assets | $ | 420,384 | $ | 362,400 | $ | 302,000 | |||||
Liabilities and Equity | |||||||||||
Accounts payable | $ | 104,676 | $ | 61,246 | $ | 39,864 | |||||
Long-term notes payable secured by mortgages on plant assets | 79,032 | 83,352 | 66,742 | ||||||||
Common stock, $10 par value | 162,500 | 162,500 | 162,500 | ||||||||
Retained earnings | 74,176 | 55,302 | 32,894 | ||||||||
Total liabilities and equity | $ | 420,384 | $ | 362,400 | $ | 302,000 | |||||
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 | $ | 546,499 | $ | 431,256 | ||||||||
Cost of goods sold | $ | 333,364 | $ | 280,316 | ||||||||
Other operating expenses | 169,415 | 109,108 | ||||||||||
Interest expense | 9,290 | 9,919 | ||||||||||
Income tax expense | 7,104 | 6,469 | ||||||||||
Total costs and expenses | 519,173 | 405,812 | ||||||||||
Net income | $ | 27,326 | $ | 25,444 | ||||||||
Earnings per share | $ | 1.68 | $ | 1.57 | ||||||||
(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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