-------

-------------------

------------------------------

Required Information Exercise 13-8 Analyzing and interpreting liquidity LO P3 [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ago At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $ie par value Retained earnings Total liabilities and equity $ 27,812 89, 180 110,500 8,956 244,635 $ 481,883 $ 32,589 $ 34,209 63,000 50, 2ee 83,5ee 58,000 8,534 3,801 227,115 206, 390 $ 414,658 $352,680 $ 117,374 $ 68,676 $ 45,612 88,620 162,5ee 112,5e9 $ 481,883 93,464 76,366 162,500 162,500 90,918 68,122 $ 414,658 $352,600 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 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Earnings per share Current Yr $ 625,384 $ 381,435 193,844 10,630 8, 129 594,038 $ 31, 266 1 Yr Ago $493,443 $ 320,738 124,841 11,349 7,402 464,330 $ 29,113 $ 1.79 $ 1.92 Exercise 13-8 Part 1 (1-a) Compute days' sales uncollected. (1-6) For each ratio, determine if it improved or worsened in the current year. Complete this question by entering your answers in the tabs below. Required 1A Required 1B Compute days' sales uncollected. Days' Sales Uncollected 1 Choose Denominator: Choose Numerator: Days Days' Sales Uncollected Days' Sales Uncollected = Current Yr: = 0 days 0 days 1 Yr Ago: = Required 1A Required 1B > Complete this question by entering your answers in the tabs below. Required 1A Required 18 For each ratio, determine if it improved or worsened in the current year. Days' sales uncollected *** equired 1A Required 1B Improved Worsened (2-6) Compute accounts receivable turnover. (2-6) For each ratio, determine if it improved or worsened in the current year. Complete this question by entering your answers in the tabs below. Required 2A Required 28 Compute accounts receivable turnover. Accounts Receivable Turnover Choose Numerator: 1 Choose Denominator: Accounts Receivable Turnover Accounts receivable turnover = Current Yr: 1 times 1 Yr Ago: times Complete this question by entering your answers in the tabs below. Required 2A Required 28 For each ratio, determine if it improved or worsened in the current year. Accounts receivable turnover (3-6) Compute inventory turnover. (3-6) For each ratio, determine if it improved or worsened in the current year. Complete this question by entering your answers in the tabs below. Required 3A Required 3B For each ratio, determine if it improved or worsened in the current year. Inventory turnover (4-6) Compute days' sales in inventory. (4-6) For each ratio, determine if it improved or worsened in the current year. Complete this question by entering your answers in the tabs below. Required 4A Required 48 For each ratio, determine if it improved or worsened in the current year. Days' sales in inventory IT Required 4A Required 4B Improved Worsened