Simon Company’s year-end balance sheets follow.
At December 31 | Current Yr | 1 Yr Ago | 2 Yrs Ago | ||||||||
Assets | |||||||||||
Cash | $ | 29,254 | $ | 34,195 | $ | 35,264 | |||||
Accounts receivable, net | 89,400 | 62,900 | 51,400 | ||||||||
Merchandise inventory | 112,000 | 83,000 | 59,000 | ||||||||
Prepaid expenses | 9,421 | 8,976 | 3,918 | ||||||||
Plant assets, net | 255,755 | 238,369 | 206,618 | ||||||||
Total assets | $ | 495,830 | $ | 427,440 | $ | 356,200 | |||||
Liabilities and Equity | |||||||||||
Accounts payable | $ | 123,462 | $ | 72,237 | $ | 47,018 | |||||
Long-term notes payable secured by mortgages on plant assets |
93,216 | 98,311 | 78,720 | ||||||||
Common stock, $10 par value | 162,500 | 162,500 | 162,500 | ||||||||
Retained earnings | 116,652 | 94,392 | 67,962 | ||||||||
Total liabilities and equity | $ | 495,830 | $ | 427,440 | $ | 356,200 | |||||
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 | Current Yr | 1 Yr Ago | ||||||||||
Sales | $ | 644,579 | $ | 508,654 | ||||||||
Cost of goods sold | $ | 393,193 | $ | 330,625 | ||||||||
Other operating expenses | 199,819 | 128,689 | ||||||||||
Interest expense | 10,958 | 11,699 | ||||||||||
Income tax expense | 8,380 | 7,630 | ||||||||||
Total costs and expenses | 612,350 | 478,643 | ||||||||||
Net income | $ | 32,229 | $ | 30,011 | ||||||||
Earnings per share | $ | 1.98 | $ | 1.85 | ||||||||
Compute days' sales uncollected.
|
Compute accounts receivable turnover.
|
Accounts receivable turnover = net credit sales / Average accounts receivable
Current year = 644579 /(89400+62900)/2 = 8.46 times
1 year ago = 508654 /(62900+51400)/2 = 8.69 days
Days sales uncollected = 365/ accounts receivable turnover
Current year = 365 / 8.46 = 43.12 days
1 year ago = 365 /8.69 = 42 days
Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs...
Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 26,445 $ 30,912 $ 31,878 Accounts receivable, net 89,500 62,900 51,500 Merchandise inventory 114,000 85,000 56,000 Prepaid expenses 8,516 8,114 3,542 Plant assets, net 209,763 199,474 179,080 Total assets $ 448,224 $ 386,400 $ 322,000 Liabilities and Equity Accounts payable $ 111,608 $ 65,302 $ 42,504 Long-term notes payable secured by mortgages on plant assets 84,266 88,872 71,162 Common stock,...
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 $ 31, 489 89,600 114,000 10, 141 293, 875 $539, 105 36, 808 62,200 84,500 9,662 271, 576 $ 464, 746 $ 38,...
Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 32,935 $ 38,498 $ 38,545 Accounts receivable, net 89,200 62,800 51,100 Merchandise inventory 114,000 85,000 51,000 Prepaid expenses 10,606 10,106 4,283 Plant assets, net 295,220 270,804 233,072 Total assets $ 541,961 $ 467,208 $ 378,000 Liabilities and Equity Accounts payable $ 138,997 $ 81,327 $ 51,393 Long-term notes payable secured by mortgages on plant assets 104,945 110,682 86,044 Common stock,...
Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 32,294 $ 38,893 $ 38,527 Accounts receivable, net 93,598 67,395 53,488 Merchandise inventory 117,682 87,294 55,831 Prepaid expenses 10,295 10,009 4,369 Plant assets, net 299,017 273,035 248,985 Total assets $ 552,886 $ 476,626 $ 401,200 Liabilities and Equity Accounts payable $ 136,292 $ 78,133 $ 51,899 Long-term notes payable secured by mortgages on plant assets 100,824 107,432 87,779 Common stock,...
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 $ 31,800 89,500 112,500 10,700 278,500 $ 523,000 $ 35,625 $ 37,800 62,500 50,200 82,500 54,000 9,375 5,000 255,000 230, 500 $ 445,000 $...
Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 26,445 $ 30,912 $ 31,878 Accounts receivable, net 89,500 62,900 51,500 Merchandise inventory 114,000 85,000 56,000 Prepaid expenses 8,516 8,114 3,542 Plant assets, net 209,763 199,474 179,080 Total assets $ 448,224 $ 386,400 $ 322,000 Liabilities and Equity Accounts payable $ 111,608 $ 65,302 $ 42,504 Long-term notes payable secured by mortgages on plant assets 84,266 88,872 71,162 Common stock,...
Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 26,445 $ 30,912 $ 31,878 Accounts receivable, net 89,500 62,900 51,500 Merchandise inventory 114,000 85,000 56,000 Prepaid expenses 8,516 8,114 3,542 Plant assets, net 209,763 199,474 179,080 Total assets $ 448,224 $ 386,400 $ 322,000 Liabilities and Equity Accounts payable $ 111,608 $ 65,302 $ 42,504 Long-term notes payable secured by mortgages on plant assets 84,266 88,872 71,162 Common stock,...
Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 34,945 $ 43,374 $ 44,312 Accounts receivable, net 104,412 72,956 58,492 Merchandise inventory 132,591 98,354 63,559 Prepaid expenses 11,369 11,386 4,874 Plant assets, net 327,281 300,308 276,363 Total assets $ 610,598 $ 526,378 $ 447,600 Liabilities and Equity Accounts payable $ 155,080 $ 90,737 $ 57,902 Long-term notes payable secured by mortgages on plant assets 114,792 119,856 98,920 Common stock,...
Simon Company's year-end balance sheets follow. Current Yr1 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 $ 29,566 88,287 106,651 9,906 271,763 $ 506,173 $ 34,908 62,312 83,148 8,989 247,098 $ 436,356 $ 34,941 46,587 51, 635 4, eee 219,337 $...
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 $ 31,953 89,200 110,500 10,290 310.679 $552,622 $ 37,350 $ 39, 303 62,900 51.900 84,000 55,000 9.804 4.367 282,344 254,530 $ 476,398 $ 405,100 $134,851 $ 78,901 $ 52,404 101,815...