Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 30,650 $ 35,827 $ 36,947 Accounts receivable, net 89,000 62,100 50,700 Merchandise inventory 113,500 84,000 58,000 Prepaid expenses 9,870 9,405 4,105 Plant assets, net 276,474 256,508 223,448 Total assets $ 519,494 $ 447,840 $ 373,200 Liabilities and Equity Accounts payable $ 129,354 $ 75,685 $ 49,262 Long-term notes payable 97,665 103,003 82,477 Common stock, $10 par value 162,500 162,500 162,500 Retained earnings 129,975 106,652 78,961 Total liabilities and equity $ 519,494 $ 447,840 $ 373,200 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 Current Yr 1 Yr Ago Sales $ 675,342 $ 532,930 Cost of goods sold $ 411,959 $ 346,405 Other operating expenses 209,356 134,831 Interest expense 11,481 12,257 Income tax expense 8,779 7,994 Total costs and expenses 641,575 501,487 Net income $ 33,767 $ 31,443 Earnings per share $ 2.08 $ 1.93 Exercise 13-9 (Algo) Part 1 (1-a) Compute days' sales uncollected. (1-b) For each ratio, determine if it improved or worsened in the current year.
Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 30,650 $ 35,827 $ 36,947 Accounts receivable, net 89,000 62,100 50,700 Merchandise inventory 113,500 84,000 58,000 Prepaid expenses 9,870 9,405 4,105 Plant assets, net 276,474 256,508 223,448 Total assets $ 519,494 $ 447,840 $ 373,200 Liabilities and Equity Accounts payable $ 129,354 $ 75,685 $ 49,262 Long-term notes payable 97,665 103,003 82,477 Common stock, $10 par value 162,500 162,500 162,500 Retained earnings 129,975 106,652 78,961 Total liabilities and equity $ 519,494 $ 447,840 $ 373,200 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 Current Yr 1 Yr Ago Sales $ 675,342 $ 532,930 Cost of goods sold $ 411,959 $ 346,405 Other operating expenses 209,356 134,831 Interest expense 11,481 12,257 Income tax expense 8,779 7,994 Total costs and expenses 641,575 501,487 Net income $ 33,767 $ 31,443 Earnings per share $ 2.08 $ 1.93 Exercise 13-9 (Algo) Part 1 (1-a) Compute days' sales uncollected. (1-b) For each ratio, determine if it improved or worsened in the current year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Simon Company’s year-end
At December 31 | Current Yr | 1 Yr Ago | 2 Yrs Ago | ||||||||
Assets | |||||||||||
Cash | $ | 30,650 | $ | 35,827 | $ | 36,947 | |||||
89,000 | 62,100 | 50,700 | |||||||||
Merchandise inventory | 113,500 | 84,000 | 58,000 | ||||||||
Prepaid expenses | 9,870 | 9,405 | 4,105 | ||||||||
Plant assets, net | 276,474 | 256,508 | 223,448 | ||||||||
Total assets | $ | 519,494 | $ | 447,840 | $ | 373,200 | |||||
Liabilities and Equity | |||||||||||
Accounts payable | $ | 129,354 | $ | 75,685 | $ | 49,262 | |||||
Long-term notes payable | 97,665 | 103,003 | 82,477 | ||||||||
Common stock, $10 par value | 162,500 | 162,500 | 162,500 | ||||||||
129,975 | 106,652 | 78,961 | |||||||||
Total liabilities and equity | $ | 519,494 | $ | 447,840 | $ | 373,200 | |||||
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 | Current Yr | 1 Yr Ago | ||||||||||
Sales | $ | 675,342 | $ | 532,930 | ||||||||
Cost of goods sold | $ | 411,959 | $ | 346,405 | ||||||||
Other operating expenses | 209,356 | 134,831 | ||||||||||
Interest expense | 11,481 | 12,257 | ||||||||||
Income tax expense | 8,779 | 7,994 | ||||||||||
Total costs and expenses | 641,575 | 501,487 | ||||||||||
Net income | $ | 33,767 | $ | 31,443 | ||||||||
Earnings per share | $ | 2.08 | $ | 1.93 | ||||||||
Exercise 13-9 (Algo) Part 1
(1-a) Compute days' sales uncollected.
(1-b) For each ratio, determine if it improved or worsened in the current year.

Transcribed Image Text:Required 1A
Required 1B
Compute days' sales uncollected.
Days' Sales Uncollected
I Choose Denominator:
Choose Numerator:
X
Days
Days' Sales Uncollected
Days' sales uncollected
Current Yr:
X
days
1 Yr Ago:
days

Transcribed Image Text:Required 1A
Required 1B
For each ratio, determine if it improved or worsened in the current year.
Days' sales uncollected
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