Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity For Year Ended December 31 Sales Cost of goods sold Other operating expenses Current Year $ 34,089 89,700 113,500 10,978 335,350 $ 583,617 Interest expense Income tax expense Total costs and expenses Net income Earnings per share $ 143,867 108, 623 162,500 168,627 $ 583,617 $ 503,118 1 Year Ago 2 Years Ago $ 39,847 62,800 83,000 10,460 307,011 $ 503,118 Current Year The company’s income statements for the current year and one year ago follow. Assume that all sales are on credit: $ 462,808 235, 198 12,898 9,863 $ 84,177 114,560 162,500 141,881 $ 758,702 720,767 $ 37,935 $ 2.33 $ 41,507 50, 100 60,000 4,612 267,281 $ 423,500 $ 55,343 92,658 162,500 112,999 $ 423,500 (1-a) Compute days' sales uncollected. (1-b) For each ratio, determine if it improved or worsened in the current year. 1 Year Ago $ 389,162 151,474 13,770 8,981 $ 598,710 563,387 $ 35,323 $ 2.17
Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity For Year Ended December 31 Sales Cost of goods sold Other operating expenses Current Year $ 34,089 89,700 113,500 10,978 335,350 $ 583,617 Interest expense Income tax expense Total costs and expenses Net income Earnings per share $ 143,867 108, 623 162,500 168,627 $ 583,617 $ 503,118 1 Year Ago 2 Years Ago $ 39,847 62,800 83,000 10,460 307,011 $ 503,118 Current Year The company’s income statements for the current year and one year ago follow. Assume that all sales are on credit: $ 462,808 235, 198 12,898 9,863 $ 84,177 114,560 162,500 141,881 $ 758,702 720,767 $ 37,935 $ 2.33 $ 41,507 50, 100 60,000 4,612 267,281 $ 423,500 $ 55,343 92,658 162,500 112,999 $ 423,500 (1-a) Compute days' sales uncollected. (1-b) For each ratio, determine if it improved or worsened in the current year. 1 Year Ago $ 389,162 151,474 13,770 8,981 $ 598,710 563,387 $ 35,323 $ 2.17
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 56P: The following selected information is taken from the financial statements of Arnn Company for its...
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