[The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Current Yr 1 Yr Ago 2 Yrs Ago 26,794 2$ 89.900 24 31,320 $ 62.100 32,958 50,500 Merchandise inventory Prepaid expenses Plant assets, net 84,000 8,221 111,000 53.000 3,662 199,580 8,629 227,082 213,846 Total assets $ 463,405 $ 399,487 $ 339,700 Liebillties and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings $ 13,080 2$ 66,163 $ 43,944 73,572 85,378 162,500 102,447 90,044 162,500 162,500 59,684 80,780 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: 1 Yr Ago For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Current Yr $ 602,427 $ 475,390 $ 367,480 186.752 $ 309.004 120,274 10,241 10,934 7,832 7131 572,305 447,343 Net income %24 30,122 2$ 28,047 Earnings per share %24 1.85 %24 1.73 (3-a) Compute inventory turnover. (3-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 3A Required 3B Compute inventory turnover. Inventory Turnover IChoose Denominator: Choose Numerator: Inventory Turover %3D Inventory tumover %3D Current Yr: times Yr Ago: times
[The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Current Yr 1 Yr Ago 2 Yrs Ago 26,794 2$ 89.900 24 31,320 $ 62.100 32,958 50,500 Merchandise inventory Prepaid expenses Plant assets, net 84,000 8,221 111,000 53.000 3,662 199,580 8,629 227,082 213,846 Total assets $ 463,405 $ 399,487 $ 339,700 Liebillties and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings $ 13,080 2$ 66,163 $ 43,944 73,572 85,378 162,500 102,447 90,044 162,500 162,500 59,684 80,780 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: 1 Yr Ago For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Current Yr $ 602,427 $ 475,390 $ 367,480 186.752 $ 309.004 120,274 10,241 10,934 7,832 7131 572,305 447,343 Net income %24 30,122 2$ 28,047 Earnings per share %24 1.85 %24 1.73 (3-a) Compute inventory turnover. (3-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 3A Required 3B Compute inventory turnover. Inventory Turnover IChoose Denominator: Choose Numerator: Inventory Turover %3D Inventory tumover %3D Current Yr: times Yr Ago: times
Chapter10: Inventory
Section: Chapter Questions
Problem 14PB: Assuming a companys year-end inventory were understated by $16,000, indicate the effect...
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![[The following information applies to the questions displayed below.]
Simon Company's year-end balance sheets follow,
At December 31
Current Yr
1 Yr Ago
2 Yrs Ago
Assets
Cash
32.958
50,500
24
26,794
2$
31,320 $
Accounts receivable, net
89,900
62.100
Merchandise inventory
Prepaid expenses
Plant assets, net
111,000
84,000
53.000
3,662
199,580
8,629
8,221
227,082
213,846
Total assets
$ 463,405
$ 399,487 $ 339,700
Liabillties and Equity
Accounts payable
$ 113,080
$
66,163 $
43,944
Long-term notes payable secured by
mortgages on plant assets
Common stock, $10 par value
Retained earnings
73.572
162,500
59,684
90,044
162,500
85,378
162,500
102,447
80,780
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
$ 602.427
$ 475,390
$ 309,004
Cost of goods sold
Other operating expenses
$ 367,480
186.752
120,274
Interest expense
10,241
10,934
Income tax expense
7,832
7,131
Total costs and expenses
572,305
447,343
Net income
%24
30,122
28.047
Earnings per share
2$
1.85
$
1,73
(3-a) Compute inventory turnover.
(3-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 3A
Required 3B
Compute inventory turnover.
Inventory Turnover
I Choose Denominator:
Choose Numerator:
Inventory Turnover
%3D
Inventory tumover
Current Yr:
times
%3D
1 Yr Ago:
%3D
times
< Required 3A
Required 3B](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F63434493-74c3-4f36-9f86-8d9f9df84a95%2F6987035f-b562-4b34-8545-3922d5ae4504%2Fa8ipjgw_processed.jpeg&w=3840&q=75)
Transcribed Image Text:[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
32.958
50,500
24
26,794
2$
31,320 $
Accounts receivable, net
89,900
62.100
Merchandise inventory
Prepaid expenses
Plant assets, net
111,000
84,000
53.000
3,662
199,580
8,629
8,221
227,082
213,846
Total assets
$ 463,405
$ 399,487 $ 339,700
Liabillties and Equity
Accounts payable
$ 113,080
$
66,163 $
43,944
Long-term notes payable secured by
mortgages on plant assets
Common stock, $10 par value
Retained earnings
73.572
162,500
59,684
90,044
162,500
85,378
162,500
102,447
80,780
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
$ 602.427
$ 475,390
$ 309,004
Cost of goods sold
Other operating expenses
$ 367,480
186.752
120,274
Interest expense
10,241
10,934
Income tax expense
7,832
7,131
Total costs and expenses
572,305
447,343
Net income
%24
30,122
28.047
Earnings per share
2$
1.85
$
1,73
(3-a) Compute inventory turnover.
(3-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 3A
Required 3B
Compute inventory turnover.
Inventory Turnover
I Choose Denominator:
Choose Numerator:
Inventory Turnover
%3D
Inventory tumover
Current Yr:
times
%3D
1 Yr Ago:
%3D
times
< Required 3A
Required 3B
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