Required Information [The following Information applies to the questions displayed below.] Simon Company's year-end balance sheets...
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Required Information [The following Information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Assets Current Year 1 Year Ago 2 Years Ago Cash $ 36,934 Accounts receivable, net 108,118 Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable 135,938 11,894 333,124 $ 626,008 $ 44,036 77,064 100,836 11,220 306,506 $ 539,662 $ 88,467 122,881 162,500 165,814 $ 157,435 Long-term notes payable Common stock, $10 par value Retained earnings 117,690 163,500 187,383 Total liabilities and equity $ 626,008 $ 539,662 $ 42,776 59,363 61,356 4,753 272,652 $ 440,900 $ 58,199 98,413 162,500 121,788 $ 440,900 For both the current year and one year ago, compute the following ratios: The company's Income statements for the Current Year and 1 Year Ago, follow. For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Earnings per share Current Year $ 813,810 $ 496,424 252,281 13,835 10,580 1 Year Ago $ 642,198 773,120 $ 40,690 $ 2.50 $ 417,429 162,476 14,771 9,633 604,309 $ 37,889 $ 2.33 Additional Information about the company follows. Common stock market price, December 31, Current Year Common stock market price, December 31, 1 Year Ago Annual cash dividends per share in Current Year Annual cash dividends per share 1 Year Ago $ 28.00 26.00 For both the current year and one year ago, compute the following ratios: 1. Return on equity. 2. Dividend yield. 3a. Price-earnings ratio on December 31. 0.38 0.19 3b. Assuming Simon's competitor has a price-earnings ratio of 7, which company has higher market expectations for future growth? Required Information [The following Information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Assets Current Year 1 Year Ago 2 Years Ago Cash $ 36,934 Accounts receivable, net 108,118 Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable 135,938 11,894 333,124 $ 626,008 $ 44,036 77,064 100,836 11,220 306,506 $ 539,662 $ 88,467 122,881 162,500 165,814 $ 157,435 Long-term notes payable Common stock, $10 par value Retained earnings 117,690 163,500 187,383 Total liabilities and equity $ 626,008 $ 539,662 $ 42,776 59,363 61,356 4,753 272,652 $ 440,900 $ 58,199 98,413 162,500 121,788 $ 440,900 For both the current year and one year ago, compute the following ratios: The company's Income statements for the Current Year and 1 Year Ago, follow. For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Earnings per share Current Year $ 813,810 $ 496,424 252,281 13,835 10,580 1 Year Ago $ 642,198 773,120 $ 40,690 $ 2.50 $ 417,429 162,476 14,771 9,633 604,309 $ 37,889 $ 2.33 Additional Information about the company follows. Common stock market price, December 31, Current Year Common stock market price, December 31, 1 Year Ago Annual cash dividends per share in Current Year Annual cash dividends per share 1 Year Ago $ 28.00 26.00 For both the current year and one year ago, compute the following ratios: 1. Return on equity. 2. Dividend yield. 3a. Price-earnings ratio on December 31. 0.38 0.19 3b. Assuming Simon's competitor has a price-earnings ratio of 7, which company has higher market expectations for future growth?
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Related Book For
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
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