Refer to the Simon Company information in Exercise 13-6. The companys income statements for the current year
Question:
Refer to the Simon Company information in Exercise 13-6. The company’s income statements for the current year and one year ago follow. Assume that all sales are on credit and then compute
(1) Days’ sales uncollected,
(2) Accounts receivable turnover,
(3) Inventory turnover,
(4) Days’ sales in inventory. For each ratio, determine if it improved or worsened in the current year. Round to one decimal.
Transcribed Image Text:
For Year Ended December 31 Current Yr 1 Yr Ago Sales .. $673,500 $532,000 Cost of goods sold.. $411,225 $345,500 Other operating expenses 209,550 134,980 Interest expense... 12,100 13,300 Income tax expense. 9,525 8,845 Total costs and expenses 642,400 502,625 Net income.. $ 31,100 $ 29,375 $ Earnings per share . $ 1.90 1.80
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To calculate the required ratios we need to use the following formulas Days sales uncollected Accoun...View the full answer
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Related Book For
Financial Accounting Information For Decisions
ISBN: 9781260705584
10th Edition
Authors: John J. Wild
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