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, $10 par value | 162,500 | 162,500 | 162,500 | ||||||||
Retained earnings | 89,850 | 69,726 | 45,834 | ||||||||
Total liabilities and equity | $ | 448,224 | $ | 386,400 | $ | 322,000 | |||||
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 | $ | 582,691 | $ | 459,816 | ||||||||
Cost of goods sold | $ | 355,442 | $ | 298,880 | ||||||||
Other operating expenses | 180,634 | 116,333 | ||||||||||
Interest expense | 9,906 | 10,576 | ||||||||||
Income tax expense | 7,575 | 6,897 | ||||||||||
Total costs and expenses | 553,557 | 432,686 | ||||||||||
Net income | $ | 29,134 | $ | 27,130 | ||||||||
Earnings per share | $ | 1.79 | $ | 1.67 | ||||||||
(1-a) Compute days' sales uncollected.
(1-b) For each ratio, determine if it improved or
worsened in the current year.
Complete this question by entering your answers in the tabs below.
Compute days' sales uncollected.
|
Solution
Days' Sales Uncollected | ||||||||
Choose Numerator: | / | Choose Denominator: | x | Days | = | Days' Sales Uncollected | ||
Average accounts receivable | / | Sales | x | 365 | = | Days' Sales Uncollected | ||
Current Yr: | $ 76,200.00 | / | $ 582,691.00 | x | 365 | = | 47.7 or 47.73 | days |
1 Yr Ago: | $ 57,200.00 | / | $ 459,816.00 | x | 365 | = | 45.4 or 45.41 | days |
The days uncollected Worsened
Please use the answer according to round off requirement .The answer could also be 48 days for current year and 45 days for 1 year ago.
Working
Current Yr: | 1 Yr Ago: | |
Beginning AR | $ 62,900.00 | $ 51,500.00 |
Ending AR | $ 89,500.00 | $ 62,900.00 |
Total | $ 152,400.00 | $ 114,400.00 |
Divided by | 2 | 2 |
Average AR | $ 76,200.00 | $ 57,200.00 |
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. 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 $ 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,...
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 89,109 111,500 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...
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 $ 27,437 90,000 115,000 8,836 214,637 $ 455, 910 $ 32,071 $ 32,425 62,300 50,400 84,000 60,000 8,419 3,603 206,236 174,672 $ 393, 026...
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 $...
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. 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 $ 28,921 $ 33,806 $ 35,215 Accounts receivable, net 89,500 62,500 51,800 Merchandise inventory 112,500 84,500 51,000 Prepaid expenses 9,314 8,874 3,913 Plant assets, net 254,909 237,168 217,372 Total assets $ 495,144 $ 426,848 $ 359,300 Liabilities and Equity Accounts payable $ 122,058 $ 71,416 $ 46,953 Long-term notes payable secured by mortgages on plant assets 92,156 97,193 78,611 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,...