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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 89,40062,60051,200
Merchandise inventory 111,50082,50059,000
Prepaid expenses 9,5909,1383,989
Plant assets, net 264,469246,072212,514
Total assets $ 504,739 $ 435,120 $ 362,600
Liabilities and Equity
Accounts payable $ 125,680 $ 73,535 $ 47,863
Long-term notes payable 94,891100,07880,135
Common stock, $10 par value 162,500162,500162,500
Retained earnings 121,66899,00772,102
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 203,410131,002
Interest expense 11,15511,909
Income tax expense 8,5307,767
Total costs and expenses 623,353487,243
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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