Simon Company's year-end balance sheets follow. Current Year 1 Year Ago 2 Years Ago At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity $ 29,952 89, 100 112,500 9,645 271,587 $ 512,784 $ 35,011 62,500 84,000 9,190 251,354 $ 442,055 $ 36,470 50, 100 57,000 4,052 224,478 $ 372,100 $ 126,406 95,439 162,500 128,439 $ 512,784 $ 73,960 100,656 162,500 104,939 $ 442,055 $ 48,626 81,412 162,500 79,562 $ 372,100 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 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Current Year $ 666,619 $ 406,638 206,652 11,333 8,666 633, 289 $ 33,330 1 Year Ago $ 526, 045 $ 341,929 133,089 12,099 7,891 495,008 $ 31,037 Earnings per share $ 2.05 $ 1.91 Required 1A Required 1B Compute days' sales uncollected. Days' Sales Uncollected 1 Denominator: Numerator: x Days = / X Days' Sales Uncollected Days' sales uncollected 0 days Current Year: / X - 1 Year Ago: / X = 0 days (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 Numerator: 1 Denominator: = Accounts Receivable Turnover 1 Accounts receivable turnover 1 times Current Year: 1 Year Ago: times Required Required 2R (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 1 Denominator: Numerator: = II / II Inventory Turnover Inventory turnover times times Current Year: / 1 Year Ago: 1 11 (4-a) Compute days' sales in inventory. (4-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 4A Required 4B Compute days' sales in inventory. Days' Sales In Inventory. Denominator: Numerator: / Days = / Days' Sales In Inventory Days' sales in inventory days days Current Year: 1 1 Year Ago: / X
