Required Information[The following information applies to the questions displayed below]Simon Company's year-end balance sheets follow.At December 31AssetsCashAccounts receivable, netHerchandise inventoryPrepaid expensesplant assets, netTotal assetsLiabilities and EquityAccounts payableLong-ters notes payableCommon stock, $10 par valueRetained earningsTotal liabilities and equityInterest expenseIncome tax expenseTotal costs and expensesNet incomeEarnings per shareCurrent Year$31,80089.500112,50010.700228,500$523.000$129,90098,500163 500131,300$ 523,000Required 2A Required 28urrent$431 225200.55042,1021.5251 Year Ago$ 35,62562,500The company's income statements for the current year and one year ago follow. Assume that all sales are on creditFor Year Ended December 31SalesCost of goods soldOther operating expenses82,5009,375255,000$445,000$25,250201.500163,5ee104,75e$445,000< Required 2A$675,5006422400$32.20052.(2-a) Compute accounts receivable turnover(2-b) For each ratio, determine if it improved or worsened in the current year.Complete this question by entering your answers in the tabs below.For each ratio, determine if it improved or worsened in the current yearAccounts receivable turnover.2 Years Ago$ 37,88050,20054,9005,000238,500$ 377,500$ $3,25083,500163,50079,250$ 377,500$345.500134,98813,3008, N451 Year Ago.Reganned 23>:$ 532,000582,625$ 29,375$ 1.80< Prev Simon Company's year-end balance sheets follow.At December 31AssetsCashAccounts receivable, netMerchandise inventoryPrepaid expensesPlant assets, netTotal assetsLiabilities and EquityAccounts payableLong-term notes payableCommon stock, $10 par valueRetained earningsTotal liabilities and equityFor Year Ended December 31SalesCost of goods soldOther operating expensesInterest expense.Income tax expenseTotal costs and expensesNet incomeEarnings per shareRequired 2A Required 28Current YearCompute accounts receivable turnover.$ 31,80089,500112,50010,700278,500$ 523,000Current Year1 Year Ago:$ 129,90098,500163,500131,100$ 523,000Numerator:Current YearThe company's income statements for the current year and one year ago follow. Assume that all sales are on credit$ 411,225209,5501 Year Ago12,1009,525$ 35,62562,50082,5009,375255,000$ 445,000$ 75,250101, 500163,500104,750$ 445,000(2-a) Compute accounts receivable turnover.(2-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.$ 673,500642, 408$ 31,100$ 1.902 Years Ago:$ 37,80050,200Accounts Receivable TurnoverDenominator:54,0005,000230,500$ 377,500$ 51,25083,500163,50079,250$ 377,500$ 345,500134,98013,3008,8451 Year Ago:.$ 532,000582,625$ 29,375$ 1.80Accounts Receivable TurnoverAccounts receivable turnovertimestimes

Ratios - Ratios is the technique used by the company to calculate by using numerator and denominator…

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 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 Year Required 2A Required 28 Compute accounts receivable turnover. $ 31,800 89,500 112,500 10,700 278,500 $ 523,000 Current Year 1 Year Ago $ 129,900 98,500 163,500 131,100 $ 523,000 Numerator: The company's income statements for the current year and one year ago follow. Assume that all sales are on cre Current Year $ 411,225 209,550 1 Year Ago 12,100 9,525 $ 35,625 62,500 82,500 9,375 255,000 $ 445,000 $ 75,250 101,500 163,500 104,750 $ 445,000 $ 673,500 (2-a) Compute accounts receivable turnover. (2-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. 642,400 $ 31,100 $ 1.90 2 Years Ago $ 37,800 50,200 54,000 5,000 230,500 $ 377,500 Accounts Receivable Turnover Denominator: $ 51,250 83,500 163,500 79,250 $ 377,500 $ 345,500 134,980 13,300 8,845 1 Year Ago $ 532,000 502,625 $ 29,375 $ 1.80 W Accounts Receivable Turnover Accounts receivable turnover times times

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q