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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 Current Year 1 Year Ago $ 37,256 89, 200 $ 43,549 62,100 112,000 11,998 374,758 $625, 212 Interest expense Income tax expense Total costs and expenses Net income Earnings per share $ 157,235 118,715 162,500 186, 762 $ 625, 212 Current Year 84,500 11,432 337,395 $ 538,976 The company’s income statements for the current year and one year ago follow. Assume that all sales are credit: $ 495,793 251, 961 13, 817 10,566 $91,998 125, 204 162,500 159, 274 $ 538,976 $ 812,776 772,137 $ 40,639 $ 2.50 2 Years Ago $ 44,466 51, 600 54,000 4,941 289, 693 $444,700 $ 59,287 99,261 162,500 123, 652 $ 444,700 (4-a) Compute days' sales in inventory. (4-b) For each ratio, determine if it improved or worsened in the current year. 1 Year Ago $ 416,898 162, 269 14,752 9,621 $641,381 603,540 $ 37,841 $ 2.33

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 Current Year 1 Year Ago $ 37,256 89, 200 $ 43,549 62,100 112,000 11,998 374,758 $625, 212 Interest expense Income tax expense Total costs and expenses Net income Earnings per share $ 157,235 118,715 162,500 186, 762 $ 625, 212 Current Year 84,500 11,432 337,395 $ 538,976 The company’s income statements for the current year and one year ago follow. Assume that all sales are credit: $ 495,793 251, 961 13, 817 10,566 $91,998 125, 204 162,500 159, 274 $ 538,976 $ 812,776 772,137 $ 40,639 $ 2.50 2 Years Ago $ 44,466 51, 600 54,000 4,941 289, 693 $444,700 $ 59,287 99,261 162,500 123, 652 $ 444,700 (4-a) Compute days' sales in inventory. (4-b) For each ratio, determine if it improved or worsened in the current year. 1 Year Ago $ 416,898 162, 269 14,752 9,621 $641,381 603,540 $ 37,841 $ 2.33

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 Current Year 1 Year Ago 2 Years Ago $ 37,256 89, 200 112,000 11,998 374, 758 $625, 212 Earnings per share $ 157, 235 118,715 162,500 186,762 $625, 212 Current Year $ 43,549 62,100 84,500 The company&rsquo;s income statements for the current year and one year ago follow. Assume that all sales are credit: $ 495,793 251,961 13, 817 10,566 11, 432 337, 395 $538,976 $91,998 125, 204 162,500 159, 274 $ 538,976 $ 812,776 772,137 $ 40,639 $ 2.50 (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. $ 44,466 51, 600 54,000 4,941 289,693 $ 444,700 $ 59,287 99,261 162, 500 123, 652 $ 444,700 1 Year Ago $ 641,381 $ 416, 898 162, 269 14,752 9, 621 < Prev M 603, 540 $ 37,841 $ 2.33 S 8 of 9 www H Next >
Transcribed Image Text: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 Current Year 1 Year Ago 2 Years Ago $ 37,256 89, 200 112,000 11,998 374, 758 $625, 212 Earnings per share $ 157, 235 118,715 162,500 186,762 $625, 212 Current Year $ 43,549 62,100 84,500 The company&rsquo;s income statements for the current year and one year ago follow. Assume that all sales are credit: $ 495,793 251,961 13, 817 10,566 11, 432 337, 395 $538,976 $91,998 125, 204 162,500 159, 274 $ 538,976 $ 812,776 772,137 $ 40,639 $ 2.50 (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. $ 44,466 51, 600 54,000 4,941 289,693 $ 444,700 $ 59,287 99,261 162, 500 123, 652 $ 444,700 1 Year Ago $ 641,381 $ 416, 898 162, 269 14,752 9, 621 < Prev M 603, 540 $ 37,841 $ 2.33 S 8 of 9 www H Next >
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