Refer to Simon Companys financial information in Exercises 13-6 and 13-8. Evaluate the companys efficiency and profitability
Question:
Refer to Simon Company’s financial information in Exercises 13-6 and 13-8. Evaluate the company’s efficiency and profitability by computing the following for 2018 and 2017:
(1) Profit margin ratio—percent rounded to one decimal,
(2) Total asset turnover—rounded to one decimal,
(3) Return on total assets—percent rounded to one decimal. Comment on these ratio results.
Exercises 13-6
Exercises 13-8
Transcribed Image Text:
At December 31 2018 2017 2016 Assets Cash... $ 31,800 $ 35,625 $ 37,800 Accounts receivable, net.. 89,500 62,500 50,200 Merchandise inventory.. 112,500 82,500 54,000 Prepaid expenses... Plant assets, net.. 10,700 9,375 5,000 278,500 255,000 230,500 Total assets.. $523.000 $445,000 $377,500 Liabilities and Equity Accounts payable..... $129,900 $ 75.250 $ 51,250 Long-term notes payable secured by mortgages on plant assets 98,500 101,500 83,500 Common stock, $10 par value. Retained earnings... Total liabilities and equity.. 163,500 163,500 163,500 79,250 104,750 $523.000 $445,000 $377,500 131,100
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1 Profit margin 2018 31100 673500 46 2017 29375 532000 5...View the full answer
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Related Book For
Financial Accounting Information for Decisions
ISBN: 978-1259917042
9th edition
Authors: John J. Wild
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