Use Cell equations if possible
B D E H 1 2 Simon Company's year-end balance sheets follow. 3 4 5 8 OO At December 31 Current Year 1 Year Ago 2 Years Ago Assets 6 Cash $31,800 $35,625 $37,800 7 Accounts receivable, net 89,500 62,500 50,200 Merchandise inventory 112,500 82,500 54,000 Prepaid expenses 10,700 9,375 5,000 10 Plant assets, net 278,500 255,000 230,500 11 Total assets $523,000 $445,000 $377,500 12 Liabilities and Equity 13 Accounts payable $129,900 $75,250 $51,250 14 Long-term notes payable 98,500 1,01,500 83,500 15 Common stock, $10 par value 163,500 163,500 163,500 16 Retained earnings 131,100 104,750 79,250 17 Total liabilities and equity $523,000 $343,500 $377,500 18 19 The company's income statements for the current year and one year ago follow. Assume that all sales are on credit: 20 21 For Year Ended December 31 Current Year 1 Year Ago 22 Sales $673,500 $532,000 23 Cost of goods sold $411,225 $345,500 24 Other operating expenses 209,550 134,980 25 Interest expense 12,100 13,300 26 Income tax expense 9,525 8,845 27 Total costs and expenses 642,400 502,625 28 Net income $31,100 $29,375 29 Earnings per share $1.90 $1.80 30 31 Required: 32 (1-a) Compute days' sales uncollected. 33 34 (Use cells A4 to E29 from the given information to complete this question.) E F G H 1 A B C D 31 Required: 32 (1-a) Compute days' sales uncollected. 33 34 (Use cells A4 to E29 from the given information to complete this question.) 35 36 Days' Sales Uncollected 37 Numerator: / Denominator: 38 1 39 Current Year: / 40 1 Year Ago: / 41 42 (1-b) Determine if days' sales uncollected improved or worsened in the current year. Days = Days' Sales Uncollected Days' sales uncollected days days 0 = 0 43 = = 44 Days' sales uncollected 45 46 (2-a) Compute accounts receivable turnover. 47 48 (Use cells A4 to E29 from the given information to complete this question.) 49 50 Accounts Receivable Turnover 51 Numerator: 7 Denominator: 52 7 53 Current Year: / 54 1 Year Ago: / 55 56 (2-b) Determine if accounts receivable turnover ratio improved or worsened in the current year. 57 58 Accounts receivable turnover 59 60 (3-a) Compute inventory turnover. 61 62 (Use cells A4 to E29 from the given information to complete this question.) 63 Accounts Receivable Turnover Accounts receivable turnover times times = Inventory Turnover Inventory Turnover times = = times 64 Inventory Turnover 65 Numerator: / Denominator: 66 / 67 Current Year: / 68 1 Year Ago: / 69 70 (3-6) Determine if inventory turnover ratio improved or worsened in the current year. 71 72 Inventory turnover 73 74 (4-a) Compute days' sales in inventory. 75 76 (Use cells A4 to E29 from the given information to complete this question.) 77 78 Days' Sales Uncollected 79 Numerator: / Denominator: 80 / 81 Current Year: / 32 1 Year Ago: / 83 34 (4-6) For each ratio, determine if days' sales in inventory improved or worsened in the current year. 85 36 Days' sales in inventory 87 Days Days' Sales In Inventory Days' sales in inventory days days X 0 0 =
