Required information [The following information applies to the questions display

Question

Required information [The following information applies to the questions displayed below. Simon Company's year-end balance sheets follow 2016 2015 At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets 2017 $ 32,970 $ 38,539 40,554 89,600 62,100 53,600 112,500 85,000 53,000 4,506 324,532 295,813 266,340 $570,219 $491,568 $418,000 10,61710,116 Liabilities and Equity Accounts payable Long-term notes payable $139,145 $ 81,413 $ 54,072 secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity 105,057 110,799 90,530 162,500 162,500 162,500 163,517 136,856 110,898 $570,219 $491,568 $418,000 The company's income statements for the years ended December 31, 2017 and 2016, follow. Assume that all sales are on credit: For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income taxes Total costs and expenses Net income 2017 2016 $741,285 $584,966 $452,184 229,798 12,602 9,637 $380,228 147,996 13,454 8,774 704,221 $ 37,064 $ 2.28 550,452 S 34,514 $ 2.12 Earnings per share (1) Compute days' sales uncollected Days' Sales Uncollected Days' Sales Uncollected Days' Sales Uncollected days days Choose Numerator: IChoose Denominator: x Days 201 201

Explanation / Answer

Days Sales uncollected = Accounts Receivable / Net Sales x 365days

                      Accounts Receivable   / Net Sales x Days

2017             89,600 / 741,285 x 365days = 44.11 days

2016            62,100 / 584,966 x 365 days = 38.74days

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