Required information [The following information applies to the questions displayed below.] Simon Company’s year-end balance sheets follow. At December 31201720162015Assets         Cash$31,800 $35,625 $37,800 Accounts receivable, net 89,500  62,500  50,200 Merchandise inventory 112,500  82,500  54,000 Prepaid expenses 10,700  9,375  5,000 Plant assets, net 278,500  255,000  230,500 Total assets$523,000 $445,000 $377,500 Liabilities and Equity         Accounts payable$129,900 $75,250 $51,250 Long-term notes payable secured bymortgages on plant assets 98,500  101,500  83,500 Common stock, $10 par value 163,500  163,500  163,500 Retained earnings 131,100  104,750  79,250 Total liabilities and equity$523,000 $445,000 $377,500   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 3120172016Sales   $673,500    $532,000 Cost of goods sold$411,225    $345,500    Other operating expenses 209,550     134,980    Interest expense 12,100     13,300    Income taxes 9,525     8,845    Total costs and expenses    642,400     502,625 Net income   $31,100    $29,375 Earnings per share   $1.90    $1.80   (4) Compute days' sales in inventory.

Question
Asked Mar 14, 2019
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Required information

 

[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 $ 31,800   $ 35,625   $ 37,800  
Accounts receivable, net   89,500     62,500     50,200  
Merchandise inventory   112,500     82,500     54,000  
Prepaid expenses   10,700     9,375     5,000  
Plant assets, net   278,500     255,000     230,500  
Total assets $ 523,000   $ 445,000   $ 377,500  
Liabilities and Equity                  
Accounts payable $ 129,900   $ 75,250   $ 51,250  
Long-term notes payable secured by
mortgages on plant assets
  98,500     101,500     83,500  
Common stock, $10 par value   163,500     163,500     163,500  
Retained earnings   131,100     104,750     79,250  
Total liabilities and equity $ 523,000   $ 445,000   $ 377,500  
 

 
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 2017 2016
Sales       $ 673,500         $ 532,000  
Cost of goods sold $ 411,225         $ 345,500        
Other operating expenses   209,550           134,980        
Interest expense   12,100           13,300        
Income taxes   9,525           8,845        
Total costs and expenses         642,400           502,625  
Net income       $ 31,100         $ 29,375  
Earnings per share       $ 1.90         $ 1.80  
 

 

(4) Compute days' sales in inventory.
 

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