Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ag 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 $ 31,800 89,500 112,500 10,700 278,500 $ 523,000 $ 35,625 $ 37,80 62,500 50,20 82,500 54,00 9,375 5,00 255,000 230,50 $ 445,000 $ 377,50 $ 129,900 $ 75,250 $ 51,25 98,500 163,500 131,100 $ 523,000 101,500 83,50 163,500 163,50 104,750 79,25 $ 445,000 $ 377,50 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 $ 673,500 $ 411,225 209,550 12,100 9,525 642,400 $ 31,100 $ 1.90 1 Yr Ago $ 532,000 $345,500 134,980 13,300 8,845 502,625 $ 29,375 $ 1.80 Compute inventory turnover. Inventory Turnover 1 Choose Denominator: Choose Numerator: = Inventory Turnover Inventory turnover times times Current Yr: 1 Yr Ago: For each ratio, determine if it improved or worsened in the current year. Inventory turnover Compute days' sales in inventory. Days' Sales In Inventory 7 Choose Denominator: Choose Numerator: x Days - Days' Sales In Inventory Current Yr: 1 Yr Ago: Days' sales in inventory days days For each ratio, determine if it improved or worsened in the current year. Days' sales in inventory