Required information [The following information applies to the questions displayed below] Simon Company's year-end balance sheets follow 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 Current Year 1 Year Ago 2 Years Ago $ 26,941 89,400 110,000 8,676 212,658 $ 447,675 Interest expense Income tax expense Total costs and expenses Net Income Earnings per share $ 113,700 85,846 162,500 85,629 $447,675 Current Year 355,007 180,413 $ 31,492 62,900 82,500 8,267 200,768 $385,927 9,894 7,566 $ 66,526 90,538 162,500 66,363 $385,927 The company's income statements for the current year and one year ago follow. Assume that all sales are on credit For Year Ended December 31 Sales Cost of goods sold other operating expenses $ 581,978 552,080 $ 29,098 $ 1.79 $ 31,839 51,000 60,000 3,530 168,923 $315,300 (4-a) Compute days' sales in inventory. (4-b) For each ratio, determine if it improved or worsened in the current year $ 42,452 71,075 162,500 39,273 $.315,300 Year Ago $ 298,514 116,191 10,563 6,889 $ 459,253 432,157 $ 27,096 $ 1.67
Required information [The following information applies to the questions displayed below] Simon Company's year-end balance sheets follow 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 Current Year 1 Year Ago 2 Years Ago $ 26,941 89,400 110,000 8,676 212,658 $ 447,675 Interest expense Income tax expense Total costs and expenses Net Income Earnings per share $ 113,700 85,846 162,500 85,629 $447,675 Current Year 355,007 180,413 $ 31,492 62,900 82,500 8,267 200,768 $385,927 9,894 7,566 $ 66,526 90,538 162,500 66,363 $385,927 The company's income statements for the current year and one year ago follow. Assume that all sales are on credit For Year Ended December 31 Sales Cost of goods sold other operating expenses $ 581,978 552,080 $ 29,098 $ 1.79 $ 31,839 51,000 60,000 3,530 168,923 $315,300 (4-a) Compute days' sales in inventory. (4-b) For each ratio, determine if it improved or worsened in the current year $ 42,452 71,075 162,500 39,273 $.315,300 Year Ago $ 298,514 116,191 10,563 6,889 $ 459,253 432,157 $ 27,096 $ 1.67
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
[The following information applies to the questions displayed below.]
Simon Company's year-end balance sheets follow
At December 31
Assets
Casht
Accounts receivable, net
Merchandise inventory
Prepaid expenses
Plant assets, net
Total assets
Current Year 1 Year Ago 2 Years Ago
$ 26,941
89,400
110,000
8,676
212,658
$ 447,675
$ 113,700
85,846
162,500
85,629
$ 447,675
Current Year
$ 31,492
62,900
82,500
8,267
200,768
$ 385,927
Liabilities and Equity
Accounts payable
Long-term notes payable
Common stock, $10 par value
Retained earnings
Total liabilities and equity
The company's income statements for the current year and one 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
$ 355,007
180,413
9,894
7,566
$ 66,526
90,538
162,500
66,363
$385,927
$ 581,978
552,080
$ 29,098
$ 1.79
$ 31,839
51,000
60,000
3,538
168,923
$315,300
(4-6) Compute days' sales in inventory.
(4-b) For each ratio, determine if it improved or worsened in the current year
$ 42,452
71,075
162,500
39,273
$ 315,300
1 Year Ago
$ 298,514
116,191
10,563
6,889
$ 459,253
432,157
$ 27,096
$ 1.67](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F492121c0-3843-4585-9c4f-58f7a1b7b43d%2F89b24238-20bd-4acb-9253-90752371b910%2Fmhw1nef_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Simon Company's year-end balance sheets follow
At December 31
Assets
Casht
Accounts receivable, net
Merchandise inventory
Prepaid expenses
Plant assets, net
Total assets
Current Year 1 Year Ago 2 Years Ago
$ 26,941
89,400
110,000
8,676
212,658
$ 447,675
$ 113,700
85,846
162,500
85,629
$ 447,675
Current Year
$ 31,492
62,900
82,500
8,267
200,768
$ 385,927
Liabilities and Equity
Accounts payable
Long-term notes payable
Common stock, $10 par value
Retained earnings
Total liabilities and equity
The company's income statements for the current year and one 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
$ 355,007
180,413
9,894
7,566
$ 66,526
90,538
162,500
66,363
$385,927
$ 581,978
552,080
$ 29,098
$ 1.79
$ 31,839
51,000
60,000
3,538
168,923
$315,300
(4-6) Compute days' sales in inventory.
(4-b) For each ratio, determine if it improved or worsened in the current year
$ 42,452
71,075
162,500
39,273
$ 315,300
1 Year Ago
$ 298,514
116,191
10,563
6,889
$ 459,253
432,157
$ 27,096
$ 1.67
Transcribed Image Text:(4-a) Compute days' sales in inventory.
(4-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.
Required 4A Required 4B
Compute days' sales in inventory.
Current Year:
1 Year Ago:
Numerator:
Days' Sales In Inventory
Denominator:
Days
Days' sales in inventory
days
days
Required 4B >
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