Question

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 $ 27,141 89,100 111,500 8,740 210,135 $ 446,616 $ 31,725 $ 31,764 62,600 51,200 82,000 59,000 8,328 3,529 200, 361 166,007 $ 385,014 $ 311,500 $ 114,544 $ 67,019 $ 42,352 86,483 162,500 83,089 $ 446,616 91,210 70,907 162,500 162,500 64,285 35,741 $ 385,014 $ 311,500 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 Earnings per share Current Yr $ 580,601 $ 354,167 179,986 9,870 7,548 551,571 $ 29,030 1 Yr Ago $ 458,167 $ 297,809 115,916 10,538 6,873 431,136 27,031 $ $ 1.79 $ 1.66 (4-a) Compute days' sales in inventory. (4-6) For each ratio, determine if it improved or worsened in the current year. Complete this question by entering your answers in the tabs below. Required 4A Required 4B

Answer 1

*365 for - Day's Sale in investory Current year Avanje inventory X365 cost of goods sold goods 96750 354167 99.70 Days Iyon Ajo 7osvo 365 297808 86.40 Days 3 그 그

Working notes:-

Days Sales in inventory - Average inverter 365 COGS Cutzretlens Gyo+8 2000) Current you A Average Inventory - 111500 +82000 2 96750 1 1 year ago Avereye Inventory 82 000 + 5 govo 2 ~ 70500