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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 $ 34,089 89,700 113,500 10,978 335,350 $ 583,617 Earnings per share 1 Year Ago $ 39,847 62,800 83,000 10,460 307,011 $ 503,118 $ 143,867 $ 84,177 108,623 114,560 162,500 162,500 168,627 141,881 $ 583,617 $ 503,118 The company’s income statements for the current year and one year ago follow. Assume that all sales are on credit: Current Year $758,702 $ 462,808 235, 198 12,898 9,863 720,767 $ 37,935 $ 2.33 2 Years Ago $41,507 50,100 60,000 4,612 267,281 $ 423,500 $ 55,343 92,658 Compute accounts receivable turnover. For each ratio, determine if it improved or worsened in the current year. 162,500 112,999 $ 423,500 1 Year Ago $ 389,162 151,474 13,770 8,981 $ 598,710 563,387 $ 35,323 $ 2.17

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 $ 34,089 89,700 113,500 10,978 335,350 $ 583,617 Earnings per share 1 Year Ago $ 39,847 62,800 83,000 10,460 307,011 $ 503,118 $ 143,867 $ 84,177 108,623 114,560 162,500 162,500 168,627 141,881 $ 583,617 $ 503,118 The company’s income statements for the current year and one year ago follow. Assume that all sales are on credit: Current Year $758,702 $ 462,808 235, 198 12,898 9,863 720,767 $ 37,935 $ 2.33 2 Years Ago $41,507 50,100 60,000 4,612 267,281 $ 423,500 $ 55,343 92,658 Compute accounts receivable turnover. For each ratio, determine if it improved or worsened in the current year. 162,500 112,999 $ 423,500 1 Year Ago $ 389,162 151,474 13,770 8,981 $ 598,710 563,387 $ 35,323 $ 2.17

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 $ 39,847 $ 34,089 89,700 113,500 10,978 335,350 62,800 83,000 10,460 307,011 $ 583,617 $ 503,118 Earnings per share $ 143,867 108,623 162,500 168,627 $ 84,177 114,560 162,500 141,881 $ 583,617 $ 503,118 The company’s income statements for the current year and one year ago follow. Assume that all sales are on credit: Current Year $ 462,808 235, 198 12,898 9,863 $ 758,702 720,767 $ 37,935 $2.33 2 Years Ago $ 41,507 50,100 60,000 4,612 267,281 $ 423,500 $ 55,343 92,658 162,500 112,999 $ 423,500 (2-a) Compute accounts receivable turnover. (2-b) For each ratio, determine if it improved or worsened in the current year. 1 Year Ago $ 389,162 151,474 13,770 8,981 $ 598,710 563,387 $ 35,323 $ 2.17
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 $ 39,847 $ 34,089 89,700 113,500 10,978 335,350 62,800 83,000 10,460 307,011 $ 583,617 $ 503,118 Earnings per share $ 143,867 108,623 162,500 168,627 $ 84,177 114,560 162,500 141,881 $ 583,617 $ 503,118 The company’s income statements for the current year and one year ago follow. Assume that all sales are on credit: Current Year $ 462,808 235, 198 12,898 9,863 $ 758,702 720,767 $ 37,935 $2.33 2 Years Ago $ 41,507 50,100 60,000 4,612 267,281 $ 423,500 $ 55,343 92,658 162,500 112,999 $ 423,500 (2-a) Compute accounts receivable turnover. (2-b) For each ratio, determine if it improved or worsened in the current year. 1 Year Ago $ 389,162 151,474 13,770 8,981 $ 598,710 563,387 $ 35,323 $ 2.17
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