Exercise 13-9 (Algo) Analyzing and interpreting liquidity LO P3 [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31...

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Extracted text: Exercise 13-9 (Algo) Analyzing and interpreting liquidity LO P3 [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net 2$ 25,199 89,800 113,500 8,115 203,699 31,315 50, 200 56,000 3,479 185, 106 $ 379,580 $ 326, 100 29,455 $ 62,900 83,000 7,732 196,493 Total assets $ 440,313 Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings $ 106,349 80,295 162,500 91,169 $ 440,313 62,225 $ 41,754 84,684 162,500 70,171 2$ 69,906 162,500 51,940 Total liabilities and equity $ 379,580 $ 326,100 The company's income statements for the current year and one year ago follow. Assume that all sales are on credit: 1 Yr Ago $ 451,700 For Year Ended December 31 Current Yr Sales $ 572,407 $ 349,168 177,446 9,731 7,441 $ 293,605 Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses 114,280 10,389 6,776 543,786 28,621 425,050 $ 26,650 Net income Earnings per share $ 1.76 1.64


Extracted text: Exercise 13-9 (Algo) Part 4 (4-a) Compute days' sales in inventory. (4-b) 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 4B Compute days' sales in inventory. Days' Sales In Inventory Choose Numerator: Choose Denominator: Days Days' Sales In Inventory Days' sales in inventory Current Yr: days 1 Yr Ago: days X.