Question

[The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 2017 2016 2015 Assets Cash 27,664 $ 89,400 32,336 $ 62,7ee 84, eee 8,488 32,375 52,1ee Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net 113,50e 59,eee 8,909 215,746 3,597 284,906 170,428 455,219 $ 392,430 Total assets 317,5ee Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings 116,750 $ 68,310 $ 43,167 88,149 92,967 162,see 68,653 72,273 162,5ee 39,560 162,50e 87,820 Total liabilities and equity 455,219 $ 392,430 317,5ee 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 2017 2016 Sales $591,785 466,992 Cost of goods sold other operating expenses Interest expense 360,989 183,453 10,06e 303,545 118,149 10,741 7,ee05 Income taxes 7,693 Total costs and expenses 562,195 439,440 Net income 29,590 27,552 Earnings per share 1.82 1.70 (1) Compute days' sales uncollected. Days' Sales Uncollected IChoose Denominator: Days' Sales Uncollected Choose Numerator: Days Net sales Accounts receivable 365 Days' Sales Uncollected X 2017: 0 days X 2016: 0 days x

Answer 1

Days sales uncollected = (Average accounts receivable / net sales) *365

2017 = {(89400+62700) /2/591785}*365 = 46.91 days

2016 = {(62700+52100) /2/466992}*365 = 44.86 days