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[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 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 Days' Sales In Inventory Current Year Current Year: 1 Year Ago: $ 33,204 89,000 Days' sales in inventory 111,000 10,693 324,561 $568,458 $140,131 105,801 162,500 160,026 $568,458 $ 450,787 229,088 12,563 9,607 1 Year Ago 1 $ 38,812 62,000 82,000 1 10,188 297,050 $ 490,050 1 $81,990 111,584 162,500 133,976 $ 490,050 The company's income statements for the current year and one year ago follow. Assume that all sales are on credit: For Year Ended December 31 Current Year 1 Year Ago Sales $ 738,995 Cost of goods sold Other operating expenses 702,045 $36,950 $2.27 Interest expense Income tax expense Total costs and expenses Net income Earnings per share (4-a) Compute days' sales in inventory. (4-b) For each ratio, determine if it improved or worsened in the current year. Compute days' sales in inventory. 8,747 2 Years Ago $ 40,429 51,000 58,000 X 4,492 258,579 $ 412,500 X $ 53,905 x 90,251 $ 379,054 147,539 13,413 162,500 105,844 $ 412,500 Numerator: Denominator: x Days = Days' Sales In Inventory = Days' sales in inventory For each ratio, determine if it improved or worsened in the current year. = $ 583,160 = 548,753 $ 34,407 $ 2.12 days days

[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 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 Days' Sales In Inventory Current Year Current Year: 1 Year Ago: $ 33,204 89,000 Days' sales in inventory 111,000 10,693 324,561 $568,458 $140,131 105,801 162,500 160,026 $568,458 $ 450,787 229,088 12,563 9,607 1 Year Ago 1 $ 38,812 62,000 82,000 1 10,188 297,050 $ 490,050 1 $81,990 111,584 162,500 133,976 $ 490,050 The company's income statements for the current year and one year ago follow. Assume that all sales are on credit: For Year Ended December 31 Current Year 1 Year Ago Sales $ 738,995 Cost of goods sold Other operating expenses 702,045 $36,950 $2.27 Interest expense Income tax expense Total costs and expenses Net income Earnings per share (4-a) Compute days' sales in inventory. (4-b) For each ratio, determine if it improved or worsened in the current year. Compute days' sales in inventory. 8,747 2 Years Ago $ 40,429 51,000 58,000 X 4,492 258,579 $ 412,500 X $ 53,905 x 90,251 $ 379,054 147,539 13,413 162,500 105,844 $ 412,500 Numerator: Denominator: x Days = Days' Sales In Inventory = Days' sales in inventory For each ratio, determine if it improved or worsened in the current year. = $ 583,160 = 548,753 $ 34,407 $ 2.12 days days

Managerial Accounting: The Cornerstone of Business Decision-Making
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 50E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...
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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 Year 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 Days' Sales In Inventory Current Year: 1 Year Ago: $ 33,204 89,000 Days' sales in inventory 111,000 10,693 324,561 $568,458 $140,131 105,801 162,500 160,026 $568,458 $ 450,787 229,088 12,563 9,607 1 Year Ago 1 1 $ 38,812 62,000 82,000 1 10,188 297,050 $ 490,050 $81,990 111,584 162,500 133,976 $ 490,050 The company's income statements for the current year and one year ago follow. Assume that all sales are on credit: For Year Ended December 31 Current Year 1 Year Ago Sales $ 738,995 Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Earnings per share (4-a) Compute days' sales in inventory. (4-b) For each ratio, determine if it improved or worsened in the current year. Compute days' sales in inventory. 702,045 $36,950 $2.27 8,747 2 Years Ago $ 40,429 X 51.000 58,000 4,492 258,579 $ 412,500 X $ 53,905 x 90,251 $ 379,054 162,500 105,844 147,539 13,413 $ 412,500 Numerator: Denominator: x Days = Days' Sales In Inventory = Days' sales in inventory For each ratio, determine if it improved or worsened in the current year. $ 583,160 = 548,753 $ 34,407 $ 2.12 days days
Transcribed Image Text:[The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Current Year 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 Days' Sales In Inventory Current Year: 1 Year Ago: $ 33,204 89,000 Days' sales in inventory 111,000 10,693 324,561 $568,458 $140,131 105,801 162,500 160,026 $568,458 $ 450,787 229,088 12,563 9,607 1 Year Ago 1 1 $ 38,812 62,000 82,000 1 10,188 297,050 $ 490,050 $81,990 111,584 162,500 133,976 $ 490,050 The company's income statements for the current year and one year ago follow. Assume that all sales are on credit: For Year Ended December 31 Current Year 1 Year Ago Sales $ 738,995 Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Earnings per share (4-a) Compute days' sales in inventory. (4-b) For each ratio, determine if it improved or worsened in the current year. Compute days' sales in inventory. 702,045 $36,950 $2.27 8,747 2 Years Ago $ 40,429 X 51.000 58,000 4,492 258,579 $ 412,500 X $ 53,905 x 90,251 $ 379,054 162,500 105,844 147,539 13,413 $ 412,500 Numerator: Denominator: x Days = Days' Sales In Inventory = Days' sales in inventory For each ratio, determine if it improved or worsened in the current year. $ 583,160 = 548,753 $ 34,407 $ 2.12 days days
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