Simon Companys year-end balance sheets follow. At December 31 Current Year 1 Year...
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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 | $ 29,632 | $ 34,638 | $ 35,366 |
Accounts receivable, net | 89,300 | 62,000 | 50,300 |
Merchandise inventory | 111,500 | 83,000 | 53,000 |
Prepaid expenses | 9,543 | 9,092 | 3,930 |
Plant assets, net | 257,298 | 239,954 | 211,104 |
Total assets | $ 497,273 | $ 428,684 | $ 353,700 |
Liabilities and Equity | |||
Accounts payable | $ 125,059 | $ 73,172 | $ 47,155 |
Long-term notes payable | 94,422 | 99,583 | 78,949 |
Common stock, $10 par value | 162,500 | 162,500 | 162,500 |
Retained earnings | 115,292 | 93,429 | 65,096 |
Total liabilities and equity | $ 497,273 | $ 428,684 | $ 353,700 |
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 | $ 646,455 | $ 510,134 | ||
Cost of goods sold | $ 394,338 | $ 331,587 | ||
Other operating expenses | 200,401 | 129,064 | ||
Interest expense | 10,990 | 11,733 | ||
Income tax expense | 8,404 | 7,652 | ||
Total costs and expenses | 614,133 | 480,036 | ||
Net income | $ 32,322 | $ 30,098 | ||
Earnings per share | $ 1.99 | $ 1.85 |
(1-a) Compute days' sales uncollected.
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