Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ago At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid

image text in transcribed
image text in transcribed
image text in transcribed
Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ago At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant Issets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 32,481 89,800 115,000 10,460 314,020 $561,761 $ 37,967 $ 39,953 62,900 50, 100 84,000 55,000 9,966 4,439 289, 444 262,308 $ 484,277 $ 411,800 $137,081 $ 80,206 $ 53,270 103, 499 162,500 158,681 $561,761 109, 156 89,188 162,500 162,500 132,415 106,842 $ 484,277 $ 411,800 The company's income statements for the Current Year and 1 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 Yr $ 730,289 $ 445, 476 226, 390 12,415 9,494 693,775 $ 36,514 $ 2.25 1 Yr Ago $ 576,290 $ 374,589 145, 801 13,255 8,644 542, 289 $ 34,001 $ 2.09 Earnings per share (1-a) Compute days' sales uncollected. (1-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 1A Required 1B Compute days' sales uncollected: Choose Numerator: Days' Sales Uncollected 1 Choose Denominator: Days X Current Yr: 1 Days' Sales Uncollected Days' Sales Uncollected days days 1 Yr Ago: Required 18 > Required 1A Reqxired 1B For each ratio, determine if it improved or worsened in the curr Days' sales uncollected

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

Handbook For Surviving The Global Financial Crisis

Authors: Barbara Goldsmith

1st Edition

1514811995, 978-1514811993

More Books

Students also viewed these Finance questions

Question

What lessons in intervention design, does this case represent?

Answered: 1 week ago