Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets $ 29,455 $ 31,315 62,900 83,000 7,732 196,493 $ 440,313 $ 379,580 $ 326,100 $ 25,199 89,800 113,500 8,115 203,699 Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net 50, 200 56,000 3,479 185,106 Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings $ 62,225 $ 41,754 84,684 162,500 70,171 $ 440,313 $ 379,580 $ 326,100 $ 106,349 80, 295 162,500 91,169 69,906 162,500 51,940 Total liabilities and equity The company's income statements for the current year and one year ago follow. Assume that all sales For Year Ended December 31 Current Yr $ 572,407 1 Yr Ago $ 451,700 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses $ 349,168 177,446 9,731 7,441 $ 293,605 114, 280 10,389 6,776 543,786 $ 28,621 425,050 $ 26,650 Net income
Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets $ 29,455 $ 31,315 62,900 83,000 7,732 196,493 $ 440,313 $ 379,580 $ 326,100 $ 25,199 89,800 113,500 8,115 203,699 Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net 50, 200 56,000 3,479 185,106 Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings $ 62,225 $ 41,754 84,684 162,500 70,171 $ 440,313 $ 379,580 $ 326,100 $ 106,349 80, 295 162,500 91,169 69,906 162,500 51,940 Total liabilities and equity The company's income statements for the current year and one year ago follow. Assume that all sales For Year Ended December 31 Current Yr $ 572,407 1 Yr Ago $ 451,700 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses $ 349,168 177,446 9,731 7,441 $ 293,605 114, 280 10,389 6,776 543,786 $ 28,621 425,050 $ 26,650 Net income
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
12 2 a and b
![Required information
Exercise 13-9 (Algo) Analyzing and interpreting liquidity LO P3
[The following information applies to the questions displayed below.]
Simon Company's year-end balance sheets follow.
At December 31
Current Yr
1 Yr Ago
2 Yrs Ago
Assets
Cash
Accounts receivable, net
Merchandise inventory
Prepaid expenses
Plant assets, net
$ 25,199
89,800
113,500
8,115
203,699
$ 440,313
29,455 $
62,900
83,000
7,732
196,493
31,315
50, 200
56,000
3,479
185,106
Total assets
$ 379,580 $ 326,100
Liabilities and Equity
Accounts payable
Long-term notes payable
Common stock, $10 par value
Retained earnings
$ 106,349
৪০, 295
162,500
91,169
$ 62,225 $
84,684
162,500
70,171
41,754
69,906
162,500
51,940
Total liabilities and equity
$ 440,313
$ 379,580 $ 326,100
The company's income statements for the current year and one year ago follow. Assume that all sales are on credit:
1 Yr Ago
$ 451,700
For Year Ended December 31
Current Yr
Sales
$ 572,407
$ 349,168
177,446
9,731
7,441
$ 293,605
114, 280
10,389
6,776
Cost of goods sold
Other operating expenses
Interest expense
Income tax expense
Total costs and expenses
543,786
425,050
$ 26,650
Net income
28,621
Earnings per share
$
1.76
$
1.64](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb2cee1c1-b23f-4dcf-8ec3-1abf9f64204f%2F36c8049e-f7c3-4d48-abf1-3a4e16ea94cc%2Fk3e5qo9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
Exercise 13-9 (Algo) Analyzing and interpreting liquidity LO P3
[The following information applies to the questions displayed below.]
Simon Company's year-end balance sheets follow.
At December 31
Current Yr
1 Yr Ago
2 Yrs Ago
Assets
Cash
Accounts receivable, net
Merchandise inventory
Prepaid expenses
Plant assets, net
$ 25,199
89,800
113,500
8,115
203,699
$ 440,313
29,455 $
62,900
83,000
7,732
196,493
31,315
50, 200
56,000
3,479
185,106
Total assets
$ 379,580 $ 326,100
Liabilities and Equity
Accounts payable
Long-term notes payable
Common stock, $10 par value
Retained earnings
$ 106,349
৪০, 295
162,500
91,169
$ 62,225 $
84,684
162,500
70,171
41,754
69,906
162,500
51,940
Total liabilities and equity
$ 440,313
$ 379,580 $ 326,100
The company's income statements for the current year and one year ago follow. Assume that all sales are on credit:
1 Yr Ago
$ 451,700
For Year Ended December 31
Current Yr
Sales
$ 572,407
$ 349,168
177,446
9,731
7,441
$ 293,605
114, 280
10,389
6,776
Cost of goods sold
Other operating expenses
Interest expense
Income tax expense
Total costs and expenses
543,786
425,050
$ 26,650
Net income
28,621
Earnings per share
$
1.76
$
1.64
![Exercise 13-9 (Algo) Part 2
(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.
Required 2A
Required 2B
Compute accounts receivable turnover.
Accounts Receivable Turnover
Choose Numerator:
I Choose Denominator:
Accounts Receivable Turnover
/
Accounts receivable turnover
Current Yr:
times
%3D
1 Yr Ago:
times
< Required 2A
Required 2B >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb2cee1c1-b23f-4dcf-8ec3-1abf9f64204f%2F36c8049e-f7c3-4d48-abf1-3a4e16ea94cc%2Fctn4968_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 13-9 (Algo) Part 2
(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.
Required 2A
Required 2B
Compute accounts receivable turnover.
Accounts Receivable Turnover
Choose Numerator:
I Choose Denominator:
Accounts Receivable Turnover
/
Accounts receivable turnover
Current Yr:
times
%3D
1 Yr Ago:
times
< Required 2A
Required 2B >
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