Simon Company's year-end belance sheets follow. AL. December 31 G Accounts receivable, net Merchandise Inventory Prepaid expenses Plant assets, not Total assets Liabilities and equity Accounts payable Long-tere notes payable Current Year 1 Year App 2 Years Ag $16,525 , $47,000 43,an h2, 111, 57 11,78/ 1,75ll 11, 11,782 152,45 $ 601,832 317,630 $518,131 260,001 $419,700 $56,904 $151,147 $98,19 116,38 122,745 95,422 162,500 162,500 162,500 168,801 101,284 $419,900 Common stock, $16 par value Retained earnings Total liabilities and equity 112,605 $51,131 The company's Income statements for the current year and one 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 Talal custs and expenses Net income Earings per share 13,283 Current Year 1 Year Ago $ 781,342 $ 616,576 5 476,610 242,216 $ 400,774 155.004 10,137 14,181 9,249 712,275 $19. $ 2.40 580,100 $1,128 32.24 Required 1A Required 15 Compute days' sales uncollected. Numerator: Net sales Current Year: $ 1 Year Ago: $ Days' Sales Uncollected Denominator: Average accounts receivable, net = Days Days' Sales Uncollected x355 Days' sales uncollected 781,312 $ 515,576 816,576 x 385= 462.5 days x = 0 days Required 1A Required 10 For each ratio, datarmine If It Improved or worsened in the current year. Days' sales uncollected Required 2A Required 28 Compute accounts receivable turnover. Current Year: Accounts Receivable Turnover Numerator: Denominator: = Accounts Receivable Turnover = Accounts movable tumover 1 Year Ago: Required 2A Required 28 For each ratio, determine if it improved or worsened in the current year. Accounts receivable tumover Required A Required 38 Compute inventory turnover. Current Year: 1 Year Ago: = Numerator: Inventory Turnover Denominator: = - Inventory Turnover Inventory tumovar = Umes Required 3A Required 30 For each ratio, determine if it improved or worsened in the current year. Inventory turnover Required 1A Required 48 Compute days' sales in inventory. Current Year: 1 Year Ago: Numerator: 1 times times times Days' Sales In Inventory Denominator: Days = Days' Sales In Inventory = Days' sales in inventory daya days Required 4^ Required 40 For each ratio, determine if it improved or worsened in the current year. Days' sales in inventory