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 $ 36,221 90,000 112,000 11,664 351,986 $ 42,338 $ 62,700 83,500 11, 114 319,202 42,805 50,600 53,000 4,756 272,739 Total assets $ 601,871 $ 518,854 $ 423,900 $ 152,863 $ 89,440 $ 57,074 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 115, 415 162,500 171,093 121,723 95,556 162,500 162,500 145, 191 108,770 $ 518,854 $ 423,900 $ 601,871 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 Current Yr $ 782,432 $ 477,284 242,554 13,301 10,172 743,311 1 Yr Ago $ 617,436 $ 401,333 156,211 14,201 9,262 581, 007 Net income $ 39,121 $ 36,429 Earnings per share $ 2.41 $ 2.24 (1-a) Compute days' sales uncollected. (1-b) For each ratio, determine if it improved or worsened in the current year. 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 $ 36,221 90,000 112,000 11,664 351,986 $ 601,871 $ 42,338 $ 42,805 62,700 50,600 83,500 53,000 11,114 4,756 319,202 272,739 $ 518,854 $ 423,900 Total assets $ 152,863 $ 89,440 $ 57,074 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 115,415 162,500 171,093 $ 601,871 121,723 95,556 162,500 162,500 145,191 108,770 $ 518,854 $ 423,900 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 Current Yr $ 782,432 $ 477,284 242,554 13,301 10,172 743,311 $ 39,121 1 Yr Ago $ 617,436 $ 401,333 156,211 14,201 9,262 581, 007 Net income $ 36,429 Earnings per share $ 2.41 $ 2.24 (2-a) Compute accounts receivable turnover. (2.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 2A Required 2B Compute accounts receivable turnover. Accounts Receivable Turnover Choose Numerato Choose Denominator: Accounts Rec Turnover Accounts receivable turnover Current Yr: 1 times 1 Yr Ago: 1 times (Required 2A Required 2B >
