Question

Simon Company’s year-end balance sheets follow.

At December 31	Current Yr					1 Yr Ago			2 Yrs Ago
Assets
Cash		$	35,985			$	42,063		$	42,114
Accounts receivable, net			89,700				62,100			52,000
Merchandise inventory			112,000				84,500			56,000
Prepaid expenses			11,588				11,041			4,679
Plant assets, net			342,870				310,764			258,207
Total assets		$	592,143			$	510,468		$	413,000
Liabilities and Equity
Accounts payable		$	151,867			$	88,857		$	56,151
Long-term notes payable secured by mortgages on plant assets			114,663				120,930			94,011
Common stock, $10 par value			162,500				162,500			162,500
Retained earnings			163,113				138,181			100,338
Total liabilities and equity		$	592,143			$	510,468		$	413,000

The company’s income statements for the Current Year and 1 Year Ago, follow. Assume that all sales are on credit:

For Year Ended December 31	Current Yr						1 Yr Ago
Sales				$	769,786					$	607,457
Cost of goods sold	$	469,569					$	394,847
Other operating expenses		238,634						153,687
Interest expense		13,086						13,972
Income tax expense		10,007						9,112
Total costs and expenses					731,296						571,618
Net income				$	38,490					$	35,839
Earnings per share				$	2.37					$	2.21

Compute days' sales uncollected.

Days' Sales Uncollected
	Choose Numerator:	/	Choose Denominator:	x	Days	=	Days' Sales Uncollected
		/		x		=	Days' Sales Uncollected
Current Yr:		/		x		=		days
1 Yr Ago:		/		x		=		days

Compute accounts receivable turnover.

Accounts Receivable Turnover
	Choose Numerator:	/	Choose Denominator:	=	Accounts Receivable Turnover
		/		=	Accounts receivable turnover
Current Yr:		/		=		times
1 Yr Ago:		/		=		times

Compute inventory turnover.

Inventory Turnover
	Choose Numerator:	/	Choose Denominator:	=	Inventory Turnover
		/		=	Inventory turnover
Current Yr:		/		=		times
1 Yr Ago:		/		=		times

Compute inventory turnover.

Inventory Turnover
	Choose Numerator:	/	Choose Denominator:	=	Inventory Turnover
		/		=	Inventory turnover
Current Yr:		/		=		times
1 Yr Ago:		/		=		times

Answer 1