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Simon Company's year-end balance sheets follow. The companys income statements for the current year and one year ago follow. Assume that all sales are on
Simon Company's year-end balance sheets follow. The companys income statements for the current year and one year ago follow. Assume that all sales are on credit:
2 Yrs Ago SIMON COMPANY Comparative Balance Sheets December 31 Current Yr 1 Yr Ago Assets Cash $31,800 $35,625 Accounts receivable, net 89,500 62,500 Merchandise inventory 112,500 82,500 Prepaid expenses 10,700 9,375 Plant assets, net 278,500 255,000 Total assets $523,000 $445,000 SIMON COMPANY Income Statements Current Yr 1 Yr Ago Sales $673,500 $532,000 Cost of goods sold 411,225 345,500 Other operating expenses 209,550 134,980 Interest expense 12,100 13,300 Income tax expense 9,525 8,845 Total costs and expenses 642,400 502,625 Net income $31.100 $29,375 $37,800 50,200 54,000 5,000 230,500 $377,500 Earnings per share $1.90 $1.80 Liabilities and Equity Accounts payable Long-term notes payable $129,900 98,500 $75,250 101,500 $51,250 83,500 Common stock, $10 par value Retained earnings Total liabilities and equity 163,500 131,100 $523,000 163,500 104,750 $445,000 163,500 79,250 $377,500 (1) Compute days' sales uncollected (Use 365 days peryear). (2) Compute accounts receivable turnover. (3) Compute inventory turnover. (4) Compute days' sales in inventory (Use 365 days peryear)
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