(1) Compute days' sales uncollected.Days' Sales UncollectedChoose Numerator:| Choose Denominator:DaysDays' Sales Uncollected365Days' Sales UncollectedX2017:0 days2016:0 days(4) Compute days' sales in inventory.Days' Sales In Inventory.Choose Numerator:Choose Denominator:DaysDays' Sales In Inventory%3D365Days' sales in inventory2017:0 days2016:0 days%DIIIIIIIIII Exercise 13-8 Liquidity analysis and interpretation LO P3[The following information applies to the questions displayed below.]Simon Company's year-end balance sheets follow.At December 31201720162015Assets$ 25,796 $89,300112,5008,30730,153 $62,20083,0007,91530,48650,70057,0003,387CashAccounts receivable, netMerchandise inventoryPrepaid expensesPlant assets, net192,747186,258160,327Total assets$ 428,650 $ 369,526 $ 301,900Liabilities and EquityAccounts payableLong-term notes payable secured bymortgages on plant assetsCommon stock, $10 par valueRetained earnings$ 108,869 $63,699 $ 40,64882,198162,50086,691162,50056,63668,054162,50030,69875,083Total liabilities and equity$ 428,650 $ 369,526 $ 301,900The company's income statements for the years ended December 31, 2017 and 2016, follow. Assume that all sales are oncredit:For Year Ended December 3120172016Sales$ 557,245$ 439,736$ 339,919172,7469,4737,244$ 285,828111,25310,1146,596Cost of goods soldOther operating expensesInterest expenseIncome taxesTotal costs and expenses529,382413,791Net income$ 27,863$25,945Earnings per share$1.71$1.60

Name: (1) Compute days' sales uncollected.Days' Sales UncollectedChoose Num
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Description: (1) Compute days' sales uncollected.Days' Sales UncollectedChoose Numerator:| Choose Denominator:DaysDays' Sales Uncollected365Days' Sales UncollectedX2017:0 days2016:0 days(4) Compute days' sales in inventory.Days' Sales In Inventory.Choose Numerat

Days Sales Uncollected: The days' sales uncollected ratio is a liquidity measure that creditors and…

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Simon Company's year-end balance sheets follow. At December 31 2017 2016 2015 Assets $ 25,796 $ 30,153 $ 30,486 62,200 83,000 7,915 186,258 Cash Accounts receivable, net Merchandise inventory Prepaid expenses 89,300 112,500 8,307 50,700 57,000 3,387 160,327 Plant assets, net 192,747 Total assets $ 428,650 $ 369,526 $ 301,900 Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings $ 108,869 $ 63,699 $ 40,648 82,198 162,500 75,083 86,691 162,500 56,636 68,054 162,500 30,698 Total liabilities and equity $ 428,650 $ 369,526 $ 301,900 ecember 31, The company's income statements credit: the years ende 2016, follow. A all sales ar oi For Year Ended December 31 2017 2016 Sales $ 557,245 $ 439,736 Cost of goods sold Other operating expenses Interest expense $ 339,919 172,746 9,473 7,244 $ 285,828 111,253 10,114 6,596 Income taxes Total costs and expenses 529,382 413,791 Net income $ 27,863 $ 25,945 Earnings per share $ 1.71 1.60

Simon Company's year-end balance sheets follow. At December 31 2017 2016 2015 Assets $ 25,796 $ 30,153 $ 30,486 62,200 83,000 7,915 186,258 Cash Accounts receivable, net Merchandise inventory Prepaid expenses 89,300 112,500 8,307 50,700 57,000 3,387 160,327 Plant assets, net 192,747 Total assets $ 428,650 $ 369,526 $ 301,900 Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings $ 108,869 $ 63,699 $ 40,648 82,198 162,500 75,083 86,691 162,500 56,636 68,054 162,500 30,698 Total liabilities and equity $ 428,650 $ 369,526 $ 301,900 ecember 31, The company's income statements credit: the years ende 2016, follow. A all sales ar oi For Year Ended December 31 2017 2016 Sales $ 557,245 $ 439,736 Cost of goods sold Other operating expenses Interest expense $ 339,919 172,746 9,473 7,244 $ 285,828 111,253 10,114 6,596 Income taxes Total costs and expenses 529,382 413,791 Net income $ 27,863 $ 25,945 Earnings per share $ 1.71 1.60

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 16MCQ: ( Appendix 6B) Refer to the information for Morgan Inc. above. If Morgan uses a periodic inventory...

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