Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

[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

image text in transcribedimage text in transcribedimage text in transcribed

[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 $ 34, 429 89, 300 113,000 11,087 347,640 $595,456 $ 40,245 $ 42,349 62,900 50, 300 84,000 59,000 10,564 4,705 315,615 280,146 $ 513,324 $ 436,500 $145, 303 $ 85,017 $ 56,466 109,707 162,500 177,946 $595, 456 115, 703 94,537 162,500 162,500 150,104 122,997 $ 513,324 $ 436,500 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 Current Yr $ 774,093 $ 472,197 239,969 13,160 10,063 735,389 $ 38,704 1 Yr Ago $ 610,856 $ 397,056 154,547 14,050 9,163 574,816 $ 36,040 Earnings per share $ 2.38 $ 2.22 (1-a) Compute days' sales uncollected. (1-b) For each ratio, determine if it improved or worsened in the current year. Required 1A Required 1B Compute days' sales uncollected. Choose Numerator: Days' Sales Uncollected 1 Choose Denominator: | Average accounts receivable, net 472,197 1 $ 98,500 x 397,056 / $ 71,500 x Days 365 Cost of goods sold $ Days' Sales Uncollected Days' Sales Uncollected 1,749.8 days 2,026.9 days Current Yr: 365 1 Yr Ago: 365 Required 1A Required 1B > Complete this question by entering your answers in the tabs below. Required 1A Required 1B For each ratio, determine if it improved or worsened in the current year. Days' sales uncollected Worsened

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Environmental Audits

Authors: Cliff VanGuilder

1st Edition

1938549600, 978-1938549601

More Books

Students also viewed these Accounting questions

Question

describe the various forms of waste

Answered: 1 week ago

Question

4. Does cultural aptitude impact ones emotional intelligence?

Answered: 1 week ago