Required Information [The following Information applies to the questions displayed below.] Simon Company's year-end balance sheets...
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Required Information [The following Information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Assets Current Year 1 Year Ago 2 Years Ago Cash $ 36,934 Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets 108,118 135,938 11,894 333,124 $ 626,008 $ 44,036 77,064 100,836 11,220 306,506 $ 539,662 $ 42,776 59,363 61,356 4,753 272,652 $ 440,900 Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings $ 157,435 117,690 163,500 187,383 Total liabilities and equity $ 626,008 $ 539,662 $ 88,467 122,881 162,500 165,814 $ 58,199 98,413 162,500 121,788 $ 440,900 For both the current year and one year ago, compute the following ratios: 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 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Current Year 1 Year Ago $ 813,810 $ 642,198 $ 496,424 252,281 13,835 10,580 $ 417,429 162,476 14,771 9,633 773,120 $ 40,690 604,309 $ 37,889 Earnings per share (1-a) Compute days' sales uncollected. $ 2.50 (1-b) Determine if days' sales uncollected Improved or worsened in the current year. (2-a) Compute accounts receivable turnover. $ 2.33 (2-b) Determine if accounts receivable turnover ratio Improved or worsened in the current year. (3-a) Compute Inventory turnover. (3-b) Determine if Inventory turnover ratio Improved or worsened in the current year. (4-a) Compute days' sales in Inventory. (4-b) For each ratio, determine if days' sales in Inventory Improved or worsened in the current year. Required Information [The following Information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Assets Current Year 1 Year Ago 2 Years Ago Cash $ 36,934 Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets 108,118 135,938 11,894 333,124 $ 626,008 $ 44,036 77,064 100,836 11,220 306,506 $ 539,662 $ 42,776 59,363 61,356 4,753 272,652 $ 440,900 Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings $ 157,435 117,690 163,500 187,383 Total liabilities and equity $ 626,008 $ 539,662 $ 88,467 122,881 162,500 165,814 $ 58,199 98,413 162,500 121,788 $ 440,900 For both the current year and one year ago, compute the following ratios: 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 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Current Year 1 Year Ago $ 813,810 $ 642,198 $ 496,424 252,281 13,835 10,580 $ 417,429 162,476 14,771 9,633 773,120 $ 40,690 604,309 $ 37,889 Earnings per share (1-a) Compute days' sales uncollected. $ 2.50 (1-b) Determine if days' sales uncollected Improved or worsened in the current year. (2-a) Compute accounts receivable turnover. $ 2.33 (2-b) Determine if accounts receivable turnover ratio Improved or worsened in the current year. (3-a) Compute Inventory turnover. (3-b) Determine if Inventory turnover ratio Improved or worsened in the current year. (4-a) Compute days' sales in Inventory. (4-b) For each ratio, determine if days' sales in Inventory Improved or worsened in the current year.
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Related Book For
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Posted Date:
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