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Simon Companys year-end balance sheets follow. At December 31 Current Year 1...

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Accounting

Simon Companys year $-$ end balance sheets follow.

At December $31$ Current Year $1$ Year Ago $2$ Years Ago

Assets

Cash $ $29, 780$ $ $34, 810$ $ $35, 897$

Accounts receivable, net $89, 400 62, 600 51, 200$

Merchandise inventory $111, 500 82, 500 59, 000$

Prepaid expenses $9, 590 9, 138 3, 989$

Plant assets, net $264, 469 246, 072 212, 514$

Total assets $ $504, 739$ $ $435, 120$ $ $362, 600$

Liabilities and Equity

Accounts payable $ $125, 680$ $ $73, 535$ $ $47, 863$

Long $-$ term notes payable $94, 891 100, 078 80, 135$

Common stock, $ $10$ par value $162, 500 162, 500 162, 500$

Retained earnings $121, 668 99, 007 72, 102$

Total liabilities and equity $ $504, 739$ $ $435, 120$ $ $362, 600$

The companys 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 $ $656, 161$ $ $517, 793$

Cost of goods sold $ $400, 258$ $ $336, 565$

Other operating expenses $203, 410 131, 002$

Interest expense $11, 155 11, 909$

Income tax expense $8, 530 7, 767$

Total costs and expenses $623, 353 487, 243$

Net income $ $32, 808$ $ $30, 550$

Earnings per share $ $2.02$ $ $1.88$

$(1 -$ a $)$ Compute days' sales uncollected.

$(1 -$ b $)$ For each ratio, determine if it improved or worsened in the current year.

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