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(The following information applies to the questions displayed belov.] Simon Company's year-end balance sheets follow. At December 31 1 Yr Ago 2 Yrs Ago Current Yr Assets Cash 2$ 31,320 $ 32,958 62.100 84,000 $ 26,794 Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net 89,900 111.000 50,500 53,000 3,662 199,580 $ 399,487 $ 339.700 8.629 8.221 227.082 213.846 Total assets $ 463,405 Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings $ 113,080 66.163 $ 43.944 90,044 73,572 162,500 85.378 162,500 162,500 80,780 $ 399,487 $ 339,700 102.447 59.684 Total liabilities and equity $ 463,405 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 Sales 1 Yr Ago Current Yr $ 602.427 $ 475,390 Cost of goods sold Other operating expenses Interest expense $ 367,480 186,752 10,241 $ 309.004 120,274 10,934 Income tax expense Total costs and expenses 7,832 7,131 572,305 24 447,343 Net income 30122 2$ 28,047 Earnings per share 24 1,85 24 1.73 (4-a) Compute days' sales in inventory. (4-b) For each ratio, determine if it improved or worsened in the current year.

(The following information applies to the questions displayed belov.] Simon Company's year-end balance sheets follow. At December 31 1 Yr Ago 2 Yrs Ago Current Yr Assets Cash 2$ 31,320 $ 32,958 62.100 84,000 $ 26,794 Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net 89,900 111.000 50,500 53,000 3,662 199,580 $ 399,487 $ 339.700 8.629 8.221 227.082 213.846 Total assets $ 463,405 Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings $ 113,080 66.163 $ 43.944 90,044 73,572 162,500 85.378 162,500 162,500 80,780 $ 399,487 $ 339,700 102.447 59.684 Total liabilities and equity $ 463,405 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 Sales 1 Yr Ago Current Yr $ 602.427 $ 475,390 Cost of goods sold Other operating expenses Interest expense $ 367,480 186,752 10,241 $ 309.004 120,274 10,934 Income tax expense Total costs and expenses 7,832 7,131 572,305 24 447,343 Net income 30122 2$ 28,047 Earnings per share 24 1,85 24 1.73 (4-a) Compute days' sales in inventory. (4-b) For each ratio, determine if it improved or worsened in the current year.

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 2E: Cost of Goods Sold and Income Statement Schuch Company presents you with the following account...
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[The following information applies to the questions displayed belovi.) Simon Company's year-end balance sheets follow, At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 26.794 2$ 31,320 $ 62,100 84.000 32,958 Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net 89,900 50,500 53,000 3,662 111,000 8,629 8.221 227,082 213,846 199,580 Total assets $ 463,405 $ 399,487 $ 339,700 Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings $ 113,080 24 66,163 $ 43.944 85,378 162,500 102,447 90,044 162,500 73,572 162,500 80,780 59,684 Total liabilities and equity $ 463,405 $ 399,487 $ 339,700 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 Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses $ 602,427 $ 475,390 $ 367,480 $ 309,004 186,752 120,274 10,241 7,832 10,934 7,131 572,305 447,343 Net income $ 30,122 2$ 28,047 Earnings per share 2$ 1.85 %24 1.73 (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 Days Days' Sales In Inventory %3D Choose Numerator: Choose Denominator: %3D Days' sales in inventory days %3D Current Yr: days %D 1 Yr Ago: <Required 4A Required 48 >
Transcribed Image Text:[The following information applies to the questions displayed belovi.) Simon Company's year-end balance sheets follow, At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 26.794 2$ 31,320 $ 62,100 84.000 32,958 Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net 89,900 50,500 53,000 3,662 111,000 8,629 8.221 227,082 213,846 199,580 Total assets $ 463,405 $ 399,487 $ 339,700 Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings $ 113,080 24 66,163 $ 43.944 85,378 162,500 102,447 90,044 162,500 73,572 162,500 80,780 59,684 Total liabilities and equity $ 463,405 $ 399,487 $ 339,700 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 Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses $ 602,427 $ 475,390 $ 367,480 $ 309,004 186,752 120,274 10,241 7,832 10,934 7,131 572,305 447,343 Net income $ 30,122 2$ 28,047 Earnings per share 2$ 1.85 %24 1.73 (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 Days Days' Sales In Inventory %3D Choose Numerator: Choose Denominator: %3D Days' sales in inventory days %3D Current Yr: days %D 1 Yr Ago: <Required 4A Required 48 >
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