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 At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets 2017 2016 2015 $ 32,970 $ 38,539 40,554 9,600 62,100 53,600 112,500 85,000 53,000 4,506 324,532 295,813 266,340 $570,219 $491,568 $418,000 10,617 10,116 Liabilities and Equity Accounts payable Long-term notes payable $139,145 $ 81,413 54,072 secured by mortgages on plant assets Common stock, value Retained earnings Total liabilities and equity 105,057 110,79990,530 162,500 162,500 162,500 163,517 136,856 110,898 $570,219 $491,568 $418,000 $10 par 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 $380,228 147,996 13,454 9,637 8,774 704,221 $37,064 $ 2.28 550,452 $ 34,514 $2.12 Earnings per share (2) Compute accounts receivable turnover. Accounts Receivable Turnover Accounts Receivable Turnover Accounts receivable turnover times times Choose Numerator: Choose Denominator 201

Explanation / Answer

Accounts Receivable Turnover = Net sales/ Average Accounts Receivable Turnover

Average Receivable Turnover = (Current Year Accounts Receivable + Previous Year Accounts Receivable)/2

2017 = (89600 +62100)/2 = 75850

2016 = (62100+53600) /2 = 57850

Year Choose Numerator Choose Denominator Accounts Receivable Turnover 2017 741285 75850 9.77 times 2016 584966 57850 10.11 times

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.