Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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 $ 34,239 89,200 111,500 11,026 334,360 $ 580, 325 $ 40,022 62,900 B4,000 10,506 302, 852 $ 500, 280 41,273 50,500 51,000 4,586 269,541 $ 416,900 $ 144,501 109, 101 162,500 164, 223 $ 580,325 $ 84,547 115,064 162,500 138, 169 $ 500,280 $ 55,031 92,135 162,500 107,230 $ 416,900 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 Earnings per share Current Year $ 754,423 $ 460,198 233,872 12,825 9,807 716, 701 $ 37,722 $ 2.32 1 Year Ago $ 595, 333 $ 386,966 150,619 13,693 8,930 560, 208 $ 35, 125 $ 2.16 (1-a) Compute days' sales uncollected. (1-b) For each ratio, determine if it improved or worsened in the current year

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: LibbyShort

7th Edition

78111021, 978-0078111020

More Books

Students also viewed these Accounting questions