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[The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise
[The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. 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 Current Yr 1 Yr Ago 2 Yrs Ago $ 36,340 $ 42,478 $ 42,947 89,100 112,000 50,500 56,000 4,772 62,400 82,500 11,703 11,151 $520,567 $425,300 354,715 322,038 271,081 $603,858 $153,368 $ 89,735 $ 57,262 115,796 122,125 95,871 162,500 162,500 162,500 172,194 $603,858 146,207 109,667 Retained earnings Total liabilities and equity $520,567 $ 425,300 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 1 Interest expense Current Ye $478,859 243,355 13,345 $ 785,015 Sales Coat of goods sold Other operating expenses Income tax expense 10,205 Total costs and expenses 745,764 Net income $ 39,251 Earnings per share. $ 2.42 1 Yr Ago $ 619,475 $ 402,659 156,727 14,248 9,292 582,926 $ 36,549 $ 2.25 (1-a) Compute days' sales uncollected. (1-b) For each ratio, determine if it improved or worsened in the current year.
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