Simon Company\'s year-end balance sheets follow At December 31 Assets Cash Accou
ID: 2401288 • Letter: S
Question
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 $ 31,350 $36,645 $ 37,050 53,100 56,000 4,117 216,633 $. 520,940 449,086 366,900 89,200 110,500 10,096 279,794 62,400 82,500 9,619 257,922 Liabilities and Equity Accounts payable Long-term notes payable secured by $ 132,308 $77,413 49,399 mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity 99,895 162,500 126, 237 520,940 105,356 162,500 103,817 82,707 162,500 72,294 449,086 $ 366,900 $.Explanation / Answer
(1) Days Sales Uncollected :-
Choose Numenator
/
Choose Denominator
X
Days
=
Days Sales Uncollected
Accounts Receivable
/
Net annual credit Sales
X
365
=
Days Sales Uncollected
2017
89200
/
677222
X
365
=
48.1 Days
2016
62400
/
534412
X
365
=
42.6 Days
(2) Account Receivable Turnover :-
Choose Numenator
/
Choose Denominator
=
Account receivable Turnover
Net Sales
/
Average Account Receivable net
=
Account receivable Turnover
2017
677222
/
(89200 + 62400)/2
=75800
=
8.9 times
2016
534412
/
(62400 + 53100)/2
=57750
=
9.3 times
(3) Inventory Turnover:-
Choose Numenator
/
Choose Denominator
=
Inventory Turnover
COGS
/
Average Inventory
=
Inventory Turnover
2017
413105
/
(110500 + 82500)/2
=96500
=
4.3 times
2016
347368
/
(82500 + 56000)/2
=69250
=
5.0 times
(4) Days Sales in Inventory:-
Choose Numenator
/
Choose Denominator
X
Days
=
Days Sales in Inventory
Ending Inventory
/
COGS
X
365
=
Days Sales in Inventory
2017
110500
/
413105
X
365
=
97.6 Days
2016
82500
/
347368
X
365
=
86.7 Days
Choose Numenator
/
Choose Denominator
X
Days
=
Days Sales Uncollected
Accounts Receivable
/
Net annual credit Sales
X
365
=
Days Sales Uncollected
2017
89200
/
677222
X
365
=
48.1 Days
2016
62400
/
534412
X
365
=
42.6 Days
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