Question

2 The following information applies to the questions displayed below Simon Company's year-end balance sheets follow Part 2 of 4 2017 2816 2815 At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets 35,323 $ 41,298 S 41,745 90,880 62,789 57,689 111,58 84,5 53,888 11,375 18,839 4,638 338,764 386,673 256,417 10 points $586,962 $586,802 $413,48 ebook Liabilities and Equity Accounts payable Long-term notes payable- secured by $149,877 87,225 $ 55,66 mortgages on plant assets Common stock, $18 par value Retained earning:s Total 1iabilities and equity 112,556 118,788 93,189 162,580 162,580 162,589 162,829 137,569102,851 586,962 $586,082 $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 Sales Cost of goods sold Other operating expenses Interest expense Incose taxes Total costs and expenses Net income 2016 5682,142 3465,46 5763,051 236,546 12,972 9,928 $391, 392 152, 342 13,849 9,032 724,899 s 38,152 $ 2.35 566,615 s 35,5227 5 2.19 Earnings per share (2) Compuse accounts receivable tumover

Answer 1

--Requirement 2

	Choose Numerator	Choose Denominator	Accounts receivables Turnover
	Sales	Average Accounts receivables [see working below]	Accounts receivables Turnover
2017	$763,051	$76,350	9.99 times or 10 times if rounded off
2016	$602,142	$60,150	10.01 times or 10 times if rounded off

WORKING	2017	2016
Beginning Accounts receivables	$62,700	$57,600
Ending Accounts receivables	$90,000	$62,700
Average Accounts receivables	$76,350	$60,150