! Required information Exercise 17-8 Liquidity analysis and interpretation LO P3 (The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. 2017 2016 2015 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, $10 par value Retained earnings Total liabilities and equity $ 27,378 $ 32,002 $ 33,676 89,700 62,000 53,100 114,500 84,000 55,000 8,817 8,401 3,742 233,105 221,787 201,582 $ 473,500 $ 408,190 $ 347,100 $ 115,543 $ 67,604 $ 44,901 87,238 92,006 75,175 162,500 162,500 162,500 108, 219 86,080 64,524 $ 473,500 $ 408,190 $ 347,100 The company's income statements for the years ended December 31, 2017 and 2016, follow. Assume that all sales are on credit: For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income taxes Total costs and expenses Net income 2017 $ 615,550 $ 375,486 190,821 10,464 8,002 584,773 $ 30,777 2016 $ 485,746 $ 315,735 122,894 11,172 7,286 457,087 $ 28,659 Earnings per share $ 1.89 $ 1.76 Exercise 17-8 Part 1 (1) Compute days' sales uncollected. Days' Sales Uncollected Choose Numerator: 1 Choose Denominator: x Days II Days' Sales Uncollected = = / x x 2017: / Days' Sales Uncollected days days 2016: / Exercise 17-8 Part 2 (2) Compute accounts receivable turnover. Accounts Receivable Turnover Choose Numerator: 1 Choose Denominator: = Accounts Receivable Turnover / = II Accounts receivable turnover 2017: / times 2016: 1 II times Exercise 17-8 Part 3 (3) Compute inventory turnover. Inventory Turnover Choose Numerator: | Choose Denominator: = Inventory Turnover Inventory turnover / = 2017: / = times 2016: / Il = times Exercise 17-8 Part 4 (4) Compute days' sales in inventory. Days' Sales In Inventory. Choose Numerator: / Choose Denominator: x Days II = = / Days' Sales In Inventory Days' sales in inventory o days 0 days 2017: 1 = x x 2016: / X = =