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 $ 25,468 $ 29,770 $ 31,010 Accounts receivable, net 89,600 62,200 51,000 Merchandise inventory 114,000 83,500 55,000 Prepaid expenses 8,202 7,815 3,446 Plant assets, net 198,754 192,598 175,944 Total assets $ 436,024 $ 375,883 $ 316,400 Liabilities and Equity Accounts payable $ 107,484 $ 62,889 $ 41,347 Long-term notes payable secured by mortgages on plant assets 81,153 85,589 69,225 Common stock, $10 par value 162,500 162,500 162,500 Retained earnings 84,887 64,905 43,328 Total liabilities and equity $ 436,024 $ 375,883 $ 316,400 The company’s income statements for the Current Year and 1 Year Ago, follow. Assume that all sales are on credit: For Year Ended December 31 Current Yr 1 Yr Ago Sales $ 566,831 $ 447,301 Cost of goods sold $ 345,767 $ 290,746 Other operating expenses 175,718 113,167 Interest expense 9,636 10,288 Income tax expense 7,369 6,710 Total costs and expenses 538,490 420,911 Net income $ 28,341 $ 26,390 Earnings per share $ 1.74 $ 1.62 (1-a) Compute days' sales uncollected. (1-b) For each ratio, determine if it improved or worsened in the current year
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 $ 25,468 $ 29,770 $ 31,010 Accounts receivable, net 89,600 62,200 51,000 Merchandise inventory 114,000 83,500 55,000 Prepaid expenses 8,202 7,815 3,446 Plant assets, net 198,754 192,598 175,944 Total assets $ 436,024 $ 375,883 $ 316,400 Liabilities and Equity Accounts payable $ 107,484 $ 62,889 $ 41,347 Long-term notes payable secured by mortgages on plant assets 81,153 85,589 69,225 Common stock, $10 par value 162,500 162,500 162,500 Retained earnings 84,887 64,905 43,328 Total liabilities and equity $ 436,024 $ 375,883 $ 316,400 The company’s income statements for the Current Year and 1 Year Ago, follow. Assume that all sales are on credit: For Year Ended December 31 Current Yr 1 Yr Ago Sales $ 566,831 $ 447,301 Cost of goods sold $ 345,767 $ 290,746 Other operating expenses 175,718 113,167 Interest expense 9,636 10,288 Income tax expense 7,369 6,710 Total costs and expenses 538,490 420,911 Net income $ 28,341 $ 26,390 Earnings per share $ 1.74 $ 1.62 (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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Question
The following information applies to the questions displayed below.]
Simon Company’s year-end
| At December 31 | Current Yr | 1 Yr Ago | 2 Yrs Ago | ||||||||
| Assets | |||||||||||
| Cash | $ | 25,468 | $ | 29,770 | $ | 31,010 | |||||
| 89,600 | 62,200 | 51,000 | |||||||||
| Merchandise inventory | 114,000 | 83,500 | 55,000 | ||||||||
| Prepaid expenses | 8,202 | 7,815 | 3,446 | ||||||||
| Plant assets, net | 198,754 | 192,598 | 175,944 | ||||||||
| Total assets | $ | 436,024 | $ | 375,883 | $ | 316,400 | |||||
| Liabilities and Equity | |||||||||||
| Accounts payable | $ | 107,484 | $ | 62,889 | $ | 41,347 | |||||
| Long-term notes payable secured by mortgages on plant assets |
81,153 | 85,589 | 69,225 | ||||||||
| Common stock, $10 par value | 162,500 | 162,500 | 162,500 | ||||||||
| 84,887 | 64,905 | 43,328 | |||||||||
| Total liabilities and equity | $ | 436,024 | $ | 375,883 | $ | 316,400 | |||||
The company’s income statements for the Current Year and 1 Year Ago, follow. Assume that all sales are on credit:
| For Year Ended December 31 | Current Yr | 1 Yr Ago | ||||||||||
| Sales | $ | 566,831 | $ | 447,301 | ||||||||
| Cost of goods sold | $ | 345,767 | $ | 290,746 | ||||||||
| Other operating expenses | 175,718 | 113,167 | ||||||||||
| Interest expense | 9,636 | 10,288 | ||||||||||
| Income tax expense | 7,369 | 6,710 | ||||||||||
| Total costs and expenses | 538,490 | 420,911 | ||||||||||
| Net income | $ | 28,341 | $ | 26,390 | ||||||||
| Earnings per share | $ | 1.74 | $ | 1.62 | ||||||||
(1-a) Compute days' sales uncollected.
(1-b) For each ratio, determine if it improved or worsened in the current year.
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