Question

2 Required Informetion The following information applies to the questionis displayed below. Simon Company's year-end balance sheets follow. |At December31 Part 2 of 4 2017 2016 2015 0 points Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets s 35, 323 $ 41,290 41,745 98,e0 62,789 57,689 111,580 84,500 53,000 11,375 10,839 4,638 338,764386,673 256,417 $586,962 $506,002 $413,480 eBook Liabilities and Equity Accounts payable Long-tere notes payable secured by Hint 149,077 S 87,225 $ 55,66 mortgages on plant assets Common stock, $18 par value Retained earnings Total liabilities and equity 112,556 118,708 93,189 162,500 162,580 162,580 162,829137,569182,851 $586,962 $506,002 $413,400 The company's income statements for the years ended December 31, 2017 and 2016, follow. Assume that all sales are on credit For Year Ended December 31 2017 201 Sales Cost of goods sold Other operating expenses Interest expense Income taxes Total costs and expenses Net income $763,051 $682,142 $465,461 236,546 12,972 9,928 $391,392 152,342 13,849 9,832 724,899 s 38,152 S 2.35 566,615 $ 35,527 $ 2.19 Earnings per share 2) Compute accounts receivable turnover O times 2016 0 times

Answer 1

2) Calculate following

Account receivable turnover
	Choose numerator	/	Choose denominator	=	Account receivable turnover
	Sales	/	Average receivable	=	Account receivable turnover
2017	763051	/	(90000+62700/2) = 76350	=	9.99 Times
2016	602142	/	(62700+57600/2) = 60150	=	10.01 Times