Simon Company's year - end balance sheets follow. For both the current year and one year ago,
Question:
Simon Company's yearend balance sheets follow.
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:a Compute days' sales uncollected.
b Determine if days' sales uncollected improved or worsened in the current year.
a Compute accounts receivable turnover.
b Determine if accounts receivable turnover ratio improved or worsened in the current year.
a Compute inventory turnover.
b Determine if inventory turnover ratio improved or worsened in the current year.
a Compute days' sales in inventory.
b For each ratio, determine if days' sales in inventory improved or worsened in the current year.
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Compute days' sales uncollected.
Foundations of Finance The Logic and Practice of Financial Management
ISBN: 978-0132994873
8th edition
Authors: Arthur J. Keown, John D. Martin, J. William Petty