Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Current Year $ 36,326 103,200 134,997 11,930 323,154 $ 609,607 1 Year Ago 2 Years Ago $ 41,621 74,309 98,194 11,036 300,363 $ 525,523 Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity For both the current year and one year ago, compute the following ratios: $ 151,792 115,752 162,500 179,563 $ 87,037 122,079 162,500 153,907 $ 609,607 $ 525,523 $ 42,497 56,090 62,187 4,722 268,104 $ 433,600 $ 57,235 92,951 163,500 119,914 $ 433,600 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 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Earnings per share Current Year $ 483,418 245,672 13,472 10,302 $ 792,489 752,864 $ 39,625 $ 2.44 1 Year Ago $ 406,492 158,2191 14,384 9,381 $ 625,372. 588,476 $36,896. $ 2.27 (1-a) Compute days' sales uncollected. (1-b) Determine if days' sales uncollected improved or worsened in the current year. (3-a) Compute inventory turnover. (3-b) Determine if inventory turnover ratio improved or worsened in the current year. (2-a) Compute accounts receivable turnover. (2-b) Determine if accounts receivable turnover ratio improved or worsened in the current year. (4-a) Compute days' sales in inventory. (4-b) For each ratio, determine if days' sales in inventory improved or worsened in the current year. Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Current Year $ 36,326 103,200 134,997 11,930 323,154 $ 609,607 1 Year Ago 2 Years Ago $ 41,621 74,309 98,194 11,036 300,363 $ 525,523 Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity For both the current year and one year ago, compute the following ratios: $ 151,792 115,752 162,500 179,563 $ 87,037 122,079 162,500 153,907 $ 609,607 $ 525,523 $ 42,497 56,090 62,187 4,722 268,104 $ 433,600 $ 57,235 92,951 163,500 119,914 $ 433,600 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 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Earnings per share Current Year $ 483,418 245,672 13,472 10,302 $ 792,489 752,864 $ 39,625 $ 2.44 1 Year Ago $ 406,492 158,2191 14,384 9,381 $ 625,372. 588,476 $36,896. $ 2.27 (1-a) Compute days' sales uncollected. (1-b) Determine if days' sales uncollected improved or worsened in the current year. (3-a) Compute inventory turnover. (3-b) Determine if inventory turnover ratio improved or worsened in the current year. (2-a) Compute accounts receivable turnover. (2-b) Determine if accounts receivable turnover ratio improved or worsened in the current year. (4-a) Compute days' sales in inventory. (4-b) For each ratio, determine if days' sales in inventory improved or worsened in the current year.
Expert Answer:
Answer rating: 100% (QA)
1a Days Sales Uncollected Current Year Accounts Receivable 103200 Average Sales per day Sales 365 792489 365 217148 Days Sales Uncollected Accounts Re... View the full answer
Related Book For
Fundamental Accounting Principles
ISBN: 978-1259536359
23rd edition
Authors: John Wild, Ken Shaw, Barbara Chiappett
Posted Date:
Students also viewed these accounting questions
-
State and prove converse of Pythagoras theorem. Using the above theorem, solve the following: In triangle ABC, AB = 63 cm, BC = 6 cm and AC = 12 cm, find ?B.
-
Consider the following data set that contains information about a sample of ten vehicles that recorded their gross weight and their fuel efficiency as stated by the manufacturer. Vehicle Vehicle...
-
Carbon dioxide enters an adiabatic compressor at 100 kPa and 300 K at a rate of 0.5 kg/s and leaves at 600 kPa and 450 K. Neglecting kinetic energy changes, determine (a) The volume flow rate of the...
-
With regard to filing requirements for 501(c)(3) organizations: a. List those entities that are not required to file. b. What are the three financial statements required in Form 990?
-
What is the difference between management accounting and the other two types of conventional accountingfinancial accounting and other accounting systems?
-
A jewelry store makes necklaces and bracelets from gold and platinum. The store has developed the following linear programming model for determining the number of necklaces and bracelets (x1 and x2)...
-
B | y=x, y=x u(t) Bx(t) M Kx(t) Mx(t)- M u(t) K U(s) S -1 x2(t) S u(t) -1 Y(s) x(t) y(t) (5a) Consider the MBK (mass-damper-spring) system, assume M = 1, B = 1, K = 4. Show that the system can be...
-
Perform the vertical and horizontal analysis and calculate the ratios as instructed (40 points) Fill the grey cells by using Excel formulas or cells referencing NOT hardcoding. You will not earn...
-
Case Study: The Pizza Puzzle Topic: Deceptive Advertising Involved Parties: George Hansen, General Manager of Augusta Marigold Inn, aSubsidiary of Hospitality Enterprises Sharon Coombs, Food Services...
-
The ______________ is a number that splits the data set in half. In Exercises 912, fill in each blank with the appropriate word or phrase.
-
Every data set contains at least one mode. In Exercises 1316, determine whether the statement is true or false. If the statement is false, rewrite it as a true statement.
-
The __________________ is the value in the data set that appears most frequently. In Exercises 912, fill in each blank with the appropriate word or phrase.
-
Larry died on 1 November 2023 leaving an estate valued at 300,000. He had never had a wife or civil partner and he left his estate to his best friend. On 1 October 2015 he had set up a discretionary...
-
A mode is always a value that is in the data set. In Exercises 1316, determine whether the statement is true or false. If the statement is false, rewrite it as a true statement.
-
Suppose the revenue (in dollars) from the sale of x units of a product is given by 32x + 37x 2x + 2 R(X) = Find the marginal revenue when 61 units are sold. (Round your answer to the nearest dollar.)...
-
Match the following. Answers may be used more than once: Measurement Method A. Amortized cost B. Equity method C. Acquisition method and consolidation D. Fair value method Reporting Method 1. Less...
-
Write a one-page memorandum to a prospective college student about salary expectations for graduates in business. Compare and contrast the expected salaries for accounting (including different...
-
Hawk Company records prepaid assets and unearned revenues in balance sheet accounts. The following information was used to prepare adjusting entries for the company as of August 31, the end of the...
-
What are some accounting-related professions?
-
A square platform \(P Q R S\) and a car that it is supporting have a combined mass of \(M\). The platform is suspended by four elastic wires from a fixed point \(O\), as indicated in Fig. 2.72. The...
-
A pressure-vessel head is supported by a set of steel cables of length \(2 \mathrm{~m}\) as shown in Fig. 2.75. The time period of axial vibration (in vertical direction) is found to vary from \(5...
-
The inclined manometer, shown in Fig. 2.73, is used to measure pressure. If the total length of mercury in the tube is \(L\), find an expression for the natural frequency of oscillation of the...
Study smarter with the SolutionInn App