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Exercise $13-9($Algo$)$ Analyzing and interpreting liquidity LO P$3[$Alternate Version$]$

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$[$The following information applies to the questions displayed below.$]$

Simon Company$$s year$-$end balance sheets follow.

At December $31$ Current Year $1$ Year Ago $2$ Years Ago

Assets

Cash $ $26,533$ $ $31,014$ $ $31,667$

Accounts receivable, net $89,00062,20051,900$

Merchandise inventory $110,50082,50051,000$

Prepaid expenses $8,5448,1413,519$

Plant assets, net $210,677199,985178,614$

Total assets $ $445,254$ $ $383,840$ $ $316,700$

Liabilities and Equity

Accounts payable $ $111,977$ $ $65,518$ $ $42,222$

Long$-$term notes payable $84,54589,16670,691$

Common stock, $$10$ par value $162,500162,500162,500$

Retained earnings $86,23266,65641,287$

Total liabilities and equity $ $445,254$ $ $383,840$ $ $316,700$

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 Year $1$ Year Ago

Sales $ $578,830$ $ $456,770$

Cost of goods sold $ $353,086$ $ $296,901$

Other operating expenses $179,437115,563$

Interest expense $9,84010,506$

Income tax expense $7,5256,852$

Total costs and expenses $549,888429,822$

Net income $ $28,942$ $ $26,948$

Earnings per share $ $1\mathrm{.}78$ $ $1\mathrm{.}66$

Exercise $13-9($Algo$)$ Part $1[$Alternate Version$]$

$(1-$a$)$ Compute days' sales uncollected.

$(1-$b$)$ For each ratio, determine if it improved or worsened in the current year.