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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

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 $ 29,372 $ 34,333 $ 36,501
Accounts receivable, net 89,800 62,700 51,000
Merchandise inventory 114,500 83,000 59,000
Prepaid expenses 9,459 9,012 4,056
Plant assets, net 270,095 253,391 229,543
Total assets $ 513,226 $ 442,436 $ 380,100
Liabilities and Equity
Accounts payable $ 123,959 $ 72,529 $ 48,668
Long-term notes payable 93,592 98,707 81,482
Common stock, $10 par value 162,500 162,500 162,500
Retained earnings 133,175 108,700 87,450
Total liabilities and equity $ 513,226 $ 442,436 $ 380,100

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 Yr 1 Yr Ago
Sales $ 667,194 $ 526,499
Cost of goods sold $ 406,988 $ 342,224
Other operating expenses 206,830 133,204
Interest expense 11,342 12,109
Income tax expense 8,674 7,897
Total costs and expenses 633,834 495,434
Net income $ 33,360 $ 31,065
Earnings per share $ 2.05 $ 1.91

(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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