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
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 assets, 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 $ 34,894 89,280 111,000 11,237 351,067 $ 597,398 $ 40,788 $ 42,487 62,500 50,500 84,590 58,000 10,707 4,721 316,503 277,792 $ 514,998 $ 433,500 $ 147,265 $ 86,164 $ 56,650 111,188 162,500 176,445 $ 597,398 117,265 94,845 162,500 162,500 149,069 119,505 $ 514,998 $ 433,500 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 Earnings per share Current Yr $ 776,617 $ 473,736 240,751 13,202 10,096 737,785 $ 38,832 $ 2.39 1 Yr Ago $ 612,848 $ 398,351 155,051 14,096 9,193 576,691 $36,157 $ 2.23 (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 Choose Denominator: Choose Numerator: Inventory Turnover Inventory turnover Current Yr: 1 Yr Ago: 0 times O times Required 3B > search O OD $ 4 5 on 8 9 E R. o G K. (4-a) Compute days' sales in inventory. (4-6) 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 Requirkt 4B For each ratio, determine if it improved or worsened in the current year. Duys sales in Inventory to search O 6. 8

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_2

Step: 3

blur-text-image_3

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

The Quest For A Science Of AccountingAn Anthology Of The Research Of Robert R. Sterling

Authors: Thomas A. Lee, Peter W. Wolnizer

1st Edition

0367698196, 9780367698195

More Books

Students also viewed these Accounting questions

Question

2. Use the working-backward strategy to plan a party.

Answered: 1 week ago

Question

Preminet Preminet

Answered: 1 week ago

Question

What are the general types of interviews? Explain each.

Answered: 1 week ago

Question

6 How can HRM contribute to ethical management and sustainability?

Answered: 1 week ago