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Simon Company's year-end balance sheets follow. Current Year 1 Year Ago 2 Years 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 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 62,500 82,500 9,375 255,000 $445,000 $37,800 50,200 54,000 5,000 230,500 $377,500 $129,900 98,500 163,500 131,100 $523,000 $75,250 1,01,500 163,500 104,750 $343,500 $51,250 83,500 163,500 79,250 $377,500 The company's income statements for the current year and one year ago follow. Assume that all sales are on credit: Current Year 1 Year Ago $673,500 $532,000 1 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 $411,225 209,550 12,100 9,525 $345,500 134,980 13,300 8,845 1 1 642,400 $31,100 $1.90 502,625 $29,375 $1.80 1 Required: (1-a) Compute days' sales uncollected. 1 1 1 (Use cells A4 to E29 from the given information to complete this question.) Numerator: Days Days' Sales Uncollected Denominator: / / Days' Sales Uncollected Days' sales uncollected days days Current Year: 1 Year Ago: O o 0 (1-b) Determine if days' sales uncollected improved or worsened in the current year. Days' sales uncollected (2-a) Compute accounts receivable turnover. (Use cells A4 to E29 from the given information to complete this question.) Accounts Receivable Turnover Denominator: Numerator: Accounts Receivable Turnover Accounts receivable turnover times Current Year: 1 Year Ago: times (2-6) Determine if accounts receivable turnover ratio improved or worsened in the current year. Accounts receivable turnover (3-a) Compute inventory turnover. (Use cells A4 to E29 from the given information to complete this question.) Inventory Turnover Numerator: Denominator: / / Inventory Turnover Inventory Turnover times times Current Year: 1 Year Ago: = (3-6) Determine if inventory turnover ratio improved or worsened in the current year. Inventory turnover (4-a) Compute days' sales in inventory. (Use cells A4 to E29 from the given information to complete this question.) Numerator: X Days Days' Sales Uncollected / Denominator: / / / Days' Sales In Inventory Days' sales in inventory days days Current Year: 1 Year Ago: 0 0 OO = (4-6) For each ratio, determine if days' sales in inventory improved or worsened in the current year. Days' sales in inventory

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