Skip to main content Chapter 13 Homework Answer Saved Help opens in a new window Item 5 Part 1 of 4 2 points Print 5 Item 5 Item 5 Part 1 of 4 2 points Required information Skip to question [The following information applies to the questions displayed below.] Simon Companys year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 34,238 $ 40,021 $ 40,463 Accounts receivable, net 89,900 62,300 50,300 Merchandise inventory 113,500 83,000 51,000 Prepaid expenses 11,026 10,506 4,496 Plant assets, net 320,266 294,630 254,441 Total assets $ 568,930 $ 490,457 $ 400,700 Liabilities and Equity Accounts payable $ 144,497 $ 84,545 $ 53,950 Long-term notes payable secured by mortgages on plant assets 109,098 115,061 90,326 Common stock, $10 par value 162,500 162,500 162,500 Retained earnings 152,835 128,351 93,924 Total liabilities and equity $ 568,930 $ 490,457 $ 400,700 The companys income statements for the Current Year and 1 Year Ago, follow. Assume that all sales are on credit: For Year Ended December 31 Current Yr 1 Yr Ago Sales $ 739,609 $ 583,644 Cost of goods sold $ 451,161 $ 379,369 Other operating expenses 229,279 147,662 Interest expense 12,573 13,424 Income tax expense 9,615 8,755 Total costs and expenses 702,628 549,210 Net income $ 36,981 $ 34,434 Earnings per share $ 2.28 $ 2.12

(1-a) Compute days' sales uncollected. (1-b) For each ratio, determine if it improved or worsened in the current year. (2-a) Compute accounts receivable turnover. (2-b) For each ratio, determine if it improved or worsened in the current year. (3-a) Compute inventory turnover. (3-b) For each ratio, determine if it improved or worsened in the current year. (4-a) Compute days' sales in inventory. (4-b) For each ratio, determine if it improved or worsened in the current year.