[The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. Current Yr 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 $ 29,080 89,800 110,000 9,365 249,750 $487,995 1 Yr Ago 2 Yrs Ago $ 33,991 $ 34,707 62,100 50,200 85,000 54,000 8,923 3,856 230, 671 204,337 420,685 $ 347,100 $ 122,726 92,660 162,500 110,109 $ 487,995 $ 71,807 $ 46,275 97,725 77,476 162,500 162,500 88,653 60, 849 $ 420,685 $ 347,100 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 $ 634,394 $ 386,980 196,662 10,785 8,247 602,674 $ 31,720 $ 1.95 1 Yr Ago $ 500, 615 $ 325,400 126,656 11,514 7,509 471,079 $ 29,536 $ 1.82 Exercise 13-8 Part 1 (1-a) Compute days' sales uncollected. (1-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 1A Required 1B Compute days' sales uncollected. Choose Numerator: = Days' Sales Uncollected 1 Choose Denominator: 1 1 x Days x x = Days' Sales Uncollected Days' Sales Uncollected 0 days 0 days Current Yr: = 1 Yr Ago: 1 X Required 1A Required 1B > Exercise 13-8 Analyzing and interpreting liquidity LO P3 (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 $ 29,080 89,800 110,000 9,365 249,750 $487,995 $ 33,991 $ 34,707 62,100 50,200 85,000 54,000 8, 923 3,856 230,671 204,337 $ 420,685 $ 347,100 $ 122,726 $ 71,807 $ 46,275 92,660 162,500 110,109 $ 487,995 97,725 77,476 162,500 162,500 88,653 60,849 $ 420,685 $ 347,100 The company's income statements for the Current Year and 1 Year Ago, follow. Assume that all sales are on credit: 1 Yr Ago $ 500,615 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 $ 634,394 $ 386,980 196,662 10,785 8,247 602,674 $ 31,720 $ 1.95 $ 325,400 126,656 11,514 7,509 471,079 $ 29,536 $ 1.82 Exercise 13-8 Part 2 (2-a) Compute accounts receivable turnover. (2b) 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: Accounts Receivable Turnover Net sales 1 Choose Denominator: / Average accounts receivable, net 634,394 / = Accounts receivable turnover 0 times Current Yr: $ 1 Yr Ago: / = 0 times Exercise 15-8 Anaiyzing and interpreting liquidity LUPS [The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. Current Yr 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 $ 29,080 89,800 110,000 9,365 249,750 $487,995 1 Yr Ago 2 Yrs Ago $ 33,991 $ 34,707 62, 100 50,200 85,000 54,000 8,923 3,856 230,671 204,337 420,685 $ 347,100 $ 122, 726 $ 71,807 $ 46,275 92,660 162,500 110, 109 $487,995 97,725 162,500 88,653 $ 420,685 77,476 162,500 60,849 $ 347,100 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 $ 634, 394 $ 386,980 196,662 10,785 8, 247 602,674 $ 31,720 1 Yr Ago $ 500, 615 $ 325,400 126,656 11,514 7,509 471,079 $ 29,536 $ 1.95 $ 1.82 Exercise 13-8 Part 3 (3-a) Compute inventory turnover. (3-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 3A Required 3B Compute inventory turnover. Inventory Turnover 1 Choose Denominator: Choose Numerator: = Inventory Turnover = Inventory turnover 1 = times Current Yr: 1 Yr Ago: = times LACILISC Ulycry cru "LCMCurry "YuUL LUI [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 Retained earnings Total liabilities and equity Current Yr 1 Yr Ago 2 Yrs Ago $ 29,080 $ 33,991 $ 34,707 89,800 62,100 50,200 110,000 85,000 54,000 9,365 8, 923 3,856 249,750 230, 671 204,337 $487,995 $ 420,685 $ 347,100 $ 122, 726 $ 71,807 $ 46,275 92,660 97,725 77,476 162,500 162,500 162,500 110,109 88,653 60, 849 $487,995 $ 420,685 $ 347,100 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 $ 634,394 $ 386,980 196,662 10,785 8,247 602,674 $ 31,720 1 Yr Ago $ 500,615 $ 325,400 126,656 11,514 7,509 471,079 $ 29,536 $ 1.95 $ 1.82 Exercise 13-8 Part 4 (4-a) Compute days' sales in inventory. (4-6) 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 4A Required 4B Compute days' sales in inventory. Days' Sales In Inventory Choose Numerator: 1 Choose Denominator: 1 Days = X = Days' Sales In Inventory Days' sales in inventory 0 days 0 days Current Yr: / = 1 Yr Ago: 1 = Exercise 13-9 Analyzing risk and capital structure LOP3 (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 $ 28,882 86,273 109,546 9, 396 265,427 $499,524 $ 34,450 $ 34,471 58,479 46,431 79,665 50, 453 8,772 3,986 249, 258 219,959 $ 430,624 $ 355,300 $125,625 $ 73,503 $ 45,493 95,789 162,500 115,610 $499, 524 98,053 79,307 162,500 162,500 96,568 68,000 $ 430,624 $ 355,300 The company's income statements for the Current Year and 1 Year Ago, follow. For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Current Yr $649,381 $396, 122 201,308 11,039 8,442 616,911 $ 32, 470 1 Yr Ago $ 512,443 $333,088 129,648 11,786 7,687 482,209 $ 30,234 $ 1.86 Earnings per share $ 2.00 For both the Current Year and 1 Year Ago, compute the following ratios: Exercise 13-9 Part 1 (1) Debt and equity ratios. Debt Ratio Choose Numerator: 1 Choose Denominator: 1 = Debt Ratio Debt ratio % % Current Year: 1 = 1 Year Ago: Equity Ratio Choose Numerator: 1 1 1 1 Choose Denominator: = Equity Ratio = Equity ratio Current Year: 7 = % 1 Year Ago: 1 % Required information Exercise 13-9 Analyzing risk and capital structure LO P3 [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 $ 28,882 86, 273 109,546 9,396 265, 427 $499,524 $ 34,450 $ 34,471 58,479 46, 431 79,665 50, 453 8,772 3,986 249, 258 219,959 $ 430,624 $ 355, 300 $125,625 $ 73,503 $ 45, 493 95,789 162,500 115,610 $499, 524 98,053 79, 307 162,500 162,500 96,568 68,000 $ 430, 624 $ 355, 300 The company's income statements for the Current Year and 1 Year Ago, follow. For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Current Yr $649,381 $396, 122 201,308 11,039 8,442 616,911 $ 32, 470 1 Yr Ago $ 512, 443 $333,088 129,648 11,786 7,687 482,209 $ 30,234 Earnings per share $ 2.00 $ 1.86 For both the Current Year and 1 Year Ago, compute the following ratios: Exercise 13-9 Part 2 (2) Debt-to-equity ratio. Debt-To-Equity Ratio Choose Numerator: 1 Choose Denominator: = Debt-To-Equity Ratio Debt-to-equity ratio 1 = Current Year: / 0 to 1 0 to 1 1 Year Ago: 1 = 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 $ 28,882 86, 273 109,546 9,396 265,427 $499,524 $ 34,450 $ 34,471 58,479 46, 431 79,665 50,453 8,772 3,986 249, 258 219,959 $ 430,624 $ 355,300 $125,625 $ 73,503 $ 45,493 95,789 162,500 115,610 $499,524 98,053 79,307 162,500 162,500 96,568 68,000 $ 430,624 $ 355,300 The company's income statements for the Current Year and 1 Year Ago, follow. 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 $649,381 $396, 122 201,308 11,039 8, 442 616,911 $ 32, 470 $ 2.00 1 Yr Ago $512, 443 $333,088 129,648 11,786 7,687 482,209 $ 30,234 $ 1.86 For both the Current Year and 1 Year Ago, compute the following ratios: Exercise 13-9 Part 3 3-a) Times interest earned. 3-b) Based on times interest earned, is the company more or less risky for creditors in the Current Year versus 1 Year Ago? Complete this question by entering your answers in the tabs below. Required 3A Required 3B Times interest earned. Times Interest Earned Choose Numerator: = 1 Choose Denominator: / Times Interest Earned Times interest earned = Current Year: / times 1 Year Ago: / times