Simon Company's year - end balance sheets follow. At December 3 1 Current Year 1 Year Ago
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Question:
Simon Company's yearend balance sheets follow.
At December Current Year Year Ago Years Ago
Assets
Cash $ $ $
Accounts receivable, net
Merchandise inventory
Prepaid expenses
Plant assets, net
Total assets $ $ $
Liabilities and Equity
Accounts payable $ $ $
Longterm notes payable
Common stock, $ par value
Retained earnings
Total liabilities and equity $ $ $
For both the current year and one year ago, compute the following ratios:
The companys income statements for the current year and one year ago follow. Assume that all sales are on credit:
For Year Ended December Current Year Year Ago
Sales $ $
Cost of goods sold $ $
Other operating expenses
Interest expense
Income tax expense
Total costs and expenses
Net income $ $
Earnings per share $ $
a Compute days' sales uncollected.
b Determine if days' sales uncollected improved or worsened in the current year.
a Compute accounts receivable turnover.
b Determine if accounts receivable turnover ratio improved or worsened in the current year.
a Compute inventory turnover.
b Determine if inventory turnover ratio improved or worsened in the current year.
a Compute days' sales in inventory.
b For each ratio, determine if days' sales in inventory improved or worsened in the current year.
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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