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 $ 30,359 89,400 112,500 9,777 283,029 $ 525,065 $ 35,487 62,200 85,000 9,315 260,640 $ 452,642 $ 37, 343 50,100 52,000 4,149 241,308 $ 384,900 $ 128,126 96,738 162,500 137,701 $ 525,065 $ 74,967 102,026 162,500 113,149 $ 452,642 $ 49,791 83,362 162,500 89, 247 $ 384,900 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 Current Year $ 682,585 $ 416,377 211,601 11,604 8,874 648, 456 $ 34,129 1 Year Ago $ 538,644 $ 350,119 136,277 12,389 8,080 506,865 $ 31,779 Net income Earnings per share $ 2.10 $ 1.96 Required 4A Required 4B Compute days' sales in inventory. Days' Sales In Inventory. Numerator: / Denominator: X Days = / X = Days' Sales In Inventory Days' sales in inventory days days Current Year: / x = 1 Year Ago: / II Required 4A Required 4B For each ratio, determine if it improved or worsened in the current year. Days' sales in inventory