Simon Companys yearend balance sheets follow At December 31

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 $.

Solution

(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