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[The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ago At December
[The following information applies to the questions displayed below.) 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 Total assets 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 $ 32,309 89, 200 112,500 10,405 303,199 $547,613 $ 37,766 $ 38,947 62,600 51,000 84,500 56,000 9,914 4,327 277,300 243, 126 $ 472,080 $ 393,400 $ 136,356 $ 79,782 $ 51,929 102,951 162,500 145, 806 $547,613 108,578 86,941 162,500 162,500 121,220 92,030 $ 472,080 $ 393,400 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 Net income Earnings per share Current Yr $ 711,897 $ 434,257 220,688 12,102 9,255 676,302 $ 35,595 1 Yr Ago $ 561,775 $365,154 142, 129 12,921 8,427 528,631 $ 33,144 $ 2.19 $ 2.04 (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 Numerator: 1 Choose Denominator: Accounts Receivable Turnover / Accounts receivable turnover Current Yr: times 1 1 1 Yr Ago: = times (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 For each ratio, determine if it improved or worsened in the current year. Accounts receivable turnover
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