50.1K

Verified Solution

Link Copied!

Exercise 13-8 Analyzing and interpreting liquidity LO P3 The following information applies to the questions displayed below.) Simon Company's year end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ago 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 secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 29, 337 89, 200 110,500 9,447 244, 263 $482, 747 $ 34, 292 $ 34, 333 62,000 51,800 83,500 57,000 9, 002 3,815 227, 367 189, 752 $ 416, 161 $336, 700 $123, 810 $ 72,441 $ 45, 778 93, 479 162,500 102,958 98,589 76, 643 162,500 162,500 82, 631 51, 779 $ 416, 161 $336, 700 $482, 747 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 Cost of goods sold Other operating expenses Interest expense Income tax expense Total casts and expenses Current Yr S 627.571 $ 382,818 194,547 10.669 8,158 596, 192 1 Yr Ago $ 495, 232 $ 321,901 125, 294 11,390 7, 428 466, 013 $ 31, 379 S 29, 219 Net income S 1.93 S 1.80 Earnings per share (2-a) Compute accounts receivable turnover. (2-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 2A Required 28 Compute accounts receivable turnover. Accounts Receivable Turnover # 1 Choose Denominator: Accounts Receivable Turnover Choose Numerator: Accounts receivable turnover times Current Yr: times 1 Yr Ago: Required 28 > Exercise 13-8 Part 2 (2-a) Compute accounts receivable turnover. (2-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 2A Required 2B For each ratio, determine if it improved or worsened in the current year. Accounts receivable turnover Red 2A Exercise 13-8 Part 3 (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 1 Choose Denominator: Choose Numerator: Inventory Turnover 11 1 Inventory turnover times Current Yr: 1111 1 times 1 Yr Ago: Required 3B > Exercise 13-8 Part 3 (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 For each ratio, determine if it improved or worsened in the current year. Inventory turnover

Answer & Explanation Solved by verified expert

See Answer