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[The following information applies to the questions displayed below.] Simon Companys year-end balance sheets follow. At December 31 Current Year 1 Year Ago 2 Years

[The following information applies to the questions displayed below.] Simon Companys year-end balance sheets follow.

At December 31 Current Year 1 Year Ago 2 Years Ago
Assets
Cash $ 33,316 $ 38,944 $ 40,566
Accounts receivable, net 89,400 62,100 50,500
Merchandise inventory 112,500 83,500 51,000
Prepaid expenses 10,729 10,223 4,507
Plant assets, net 324,442 296,946 267,327
Total assets $ 570,387 $ 491,713 $ 413,900
Liabilities and Equity
Accounts payable $ 140,606 $ 82,269 $ 54,088
Long-term notes payable 106,160 111,963 90,557
Common stock, $10 par value 162,500 162,500 162,500
Retained earnings 161,121 134,981 106,755
Total liabilities and equity $ 570,387 $ 491,713 $ 413,900

The companys income statements for the current year and one year ago follow. Assume that all sales are on credit:

For Year Ended December 31 Current Year 1 Year Ago
Sales $ 741,503 $ 585,138
Cost of goods sold $ 452,317 $ 380,340
Other operating expenses 229,866 148,040
Interest expense 12,606 13,458
Income tax expense 9,640 8,777
Total costs and expenses 704,429 550,615
Net income $ 37,074 $ 34,523
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.

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