Fundamental Accounting Principles 22th Edition by John Wild ,Ken Shaw,Barbara Chiappetta

Exercise 3

Refer to the Simon Company information in Exercise 17-6. The company's income statements for the years ended December 31, 2015 and 2014, follow. Assume that all sales are on credit and then compute: (1) days' sales uncollected, (2) accounts receivable turnover, (3) inventory turnover, and (4) days' sales in inventory. Comment on the changes in the ratios from 2014 to 2015. (Round amounts to one decimal.)

Reference: Exercise 17-6
Simon Company's year-end balance sheets follow. Express the balance sheets in common-size percents. Round amounts to the nearest one-tenth of a percent. Analyze and comment on the results.