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. At December 31 2017 2016 2015 Assets Cash $ 26,524 $ 31,894 $ 31,657 Accounts receivable, net 89, een 62,500 54,300 Merchandise inventory 111,00 84,500 52,800 Prepaid expenses 8,542 8,139 3,517 Plant assets, net 210,048 197,576 175,126 Total assets $445,114 $383,719 $316,600 Liabilities and Equity Accounts payable $111,942 $ 65,497 $ 42,209 Long-term notes payable secured by mortgages on plant assets 84,518 89,138 70,668 Common stock, $10 par value 162,580 162,500 162,500 Retained earnings 86,154 66,584 41,223 Total liabilities and equity $445,114 $383,719 $316,600 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 Earnings per share 2017 $578,648 $352,975 179,381 9,837 7,522 549,715 $ 28,933 $ 1.78 2016 $456,626 $296,807 115,526 10,502 6,849 429,684 $ 26,942 $ 1.66 Exercise 17.8 Part 1 (1) Compute days' sales uncollected, Days Days Sales Uncollected 1 Choose Denominator: Accounts receivable, net 1 Days' Sales Uncollected Days' Sales Uncollected x 365 Choose Numerator: Net sales 2017: 2016: = 1!! = 0 days o days x = Exercise 17-8 Part 2 (2) Compute accounts receivable turnover. Choose Numerator: Accounts Receivable Turnover 1 Choose Denominator: 1 = Accounts Receivable Turnover Accounts receivable turnover 2017: 1 times 2016: 1 times Average accounts receivable, net Cost of goods sold Current assets Current liabilities Net sales Exercise 17-8 Part 3 (3) Compute Inventory turnover. Choose Numerator: Inventory Turnover 1 Choose Denominator: / 1 Inventory Turnover Inventory turnover times times 2017: 2016 Average inventory Cost of goods sold Current assets Current liabilities Ending inventory Exercise 17-8 Part 4 (4) Compute days' sales In Inventory. Choose Numerator: 1 Days" Sales In Inventory Choose Denominator: x Days = 1 = Days' Sales In Inventory Days' sales in inventory days days 1 2017: 2016: 1 =