2017 2016 2015 Simon Company's year-end balance sheets At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 26,567 $ 29,532 $ 32,019 76,244 53,280 42,691 93,015 69,701 45,926 8,472 7,752 3,489 237,161 220, 303 189,875 $ 441,459 $ 380,568 $ 314,000 $ 109,923 $ 63,673 $ 41,448 84,654 85,780 69, 394 163,500 163,500 163,500 83, 382 67,615 39,658 $ 441,459 $ 380,568 $ 314,000 SIMON COMPANY Common-Size Comparative Balance Sheets December 31, 2015-2017 2017 2016 2015 Assets Cash % % % % % % Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par Retained earnings Total liabilities and equity % % % % % % Exercise 17-8 Liquidity analysis and interpretation LO P3 [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. 2017 2016 2015 At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 28,324 $ 33, 108 $ 34, 840 89,900 62,800 56,600 115,000 82,500 57,000 9, 121 8,691 3,871 247,525 235, 203 206,789 $ 489,870 $ 422,302 $ 359,100 $ 119,538 $ 69,942 $ 46, 453 90,254 95, 187 77,774 162,500 162,500 162,500 117,578 94,673 72,373 $ 489,870 $ 422,302 $ 359,100 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 Earnings per share 2017 $636,831 $ 388,467 197,418 10,826 8,279 604,990 $ 31,841 $ 1.96 2016 $ 502,539 $ 326,650 127, 142 11,558 7,538 472,888 $ 29,651 $ 1.82 (1) Compute days' sales uncollected. Days' Sales Uncollected Choose Numerator: 1 Choose Denominator: Days = Days' Sales Uncollected Days' Sales Uncollected o days 2017: 2016: o days Exercise 17-8 Liquidity analysis and interpretation LO P3 [The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. 2017 2016 2015 At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 28,324 $ 33,108 $ 34,840 89,900 62,800 56,600 115,000 82,500 57,000 9, 121 8,691 3,871 247,525 235, 203 206,789 $ 489,870 $ 422,302 $ 359,100 $ 119,538 $ 69,942 $ 46,453 90,254 95, 187 77,774 162,500 162,500 162,500 117,578 94, 673 72,373 $ 489,870 $ 422,302 $ 359,100 The company's income statements for the years ended December 31, 2017 and 2016, follow. Assume credit: For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income taxes Total costs and expenses Net income Earnings per share 2017 $ 636,831 $ 388,467 197, 418 10,826 8,279 604,990 $ 31,841 1.96 2016 $ 502,539 $ 326,650 127, 142 11,558 7,538 472,888 $ 29,651 1.82 (2) Compute accounts receivable turnover. Choose Numerator: Accounts Receivable Turnover 1 Choose Denominator: / Accounts Receivable Turnover Accounts receivable turnover 2017: / Il times 2016: 1 11 times Exercise 17-8 Liquidity analysis and interpretation LO P3 [The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. 2017 2016 2015 At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 28,324 $ 33, 108 $ 34,840 89,900 62,800 56,600 115,000 82,500 57,000 9,121 8,691 3,871 247,525 235, 203 206,789 $ 489,870 $ 422,302 $ 359,100 $ 119,538 $ 69,942 $ 46,453 90,254 95, 187 77,774 162,500 162,500 162,500 117,578 94,673 72,373 $ 489,870 $ 422,302 $ 359,100 The company's income statements for the years ended December 31, 2017 and 2016, follow. Assume th credit: For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income taxes Total costs and expenses Net income Earnings per share 2017 $ 636,831 $ 388,467 197,418 10,826 8,279 604,990 $ 31,841 $ 1.96 2016 $ 502,539 $ 326,650 127, 142 11,558 7,538 472,888 $ 29,651 $ 1.82 (3) Compute inventory turnover. Choose Numerator: Il Inventory Turnover 1 Choose Denominator: 1 1 II 2017: Inventory Turnover Inventory turnover times times II 2016: / 2017 2016 2015 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 Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 28,324 $ 33,108 $ 34,840 89,900 62,800 56,600 115,000 82,500 57,000 9,121 8,691 3,871 247,525 235,203 206,789 $ 489,870 $ 422,302 $ 359,100 $ 119,538 $ 69,942 $ 46,453 90,254 95, 187 77,774 162,500 162,500 162,500 117,578 94,673 72, 373 $ 489,870 $ 422,302 $ 359, 100 The company's income statements for the years ended December 31, 2017 and 2016, follow. Assume th credit: For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income taxes Total costs and expenses Net income Earnings per share 2017 $636,831 $ 388,467 197,418 10,826 8,279 604,990 $ 31,841 $ 1.96 2016 $ 502,539 $ 326,650 127, 142 11,558 7,538 472,888 $ 29,651 $ 1.82 (4) Compute days' sales in inventory. = X Days Days' Sales In Inventory Choose Numerator: 1 Choose Denominator: 1 2017: 1 11 Days' Sales In Inventory Days' sales in inventory days days 11 X 2016: Simon Company's year-end balance sheets follow. 2017 2016 2015 At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 31,000 $ 36,250 $ 37,600 87,100 62,500 49,000 110,500 80,800 53,000 10,450 9,350 4,300 276,000 251,000 227,000 $515,650 $439,900 $370,900 $130,000 $ 72,000 $ 50,200 96,500 100,000 81,000 163,000 163,000 163,000 125,550 104,900 76,700 $515,050 $439,900 $370,900 The company's income statements for the years ended December 31, 2017 and 2016, follow. For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income taxes Total costs and expenses Net income Earnings per share 2017 $705,000 $423,000 204,450 11,600 9,600 648,650 $ 56,350 3.46 2016 $540,000 $340,200 124,200 13,200 8,575 486,175 $ 53,825 $ 3.30 Exercise 17-10 Part 1 (1) Profit margin ratio. Choose Numerator: Profit Margin Ratio 1 Choose Denominator: / = 1 Profit Margin Ratio Profit margin ratio % % 2017 / W 2016 = (2) Total asset turnover. Total Asset Turnover 1 Choose Denominator: Choose Numerator: Total Asset Turnover 11 Total asset turnover HP 2017 times 2016 11 times (3) Return on total assets. Return On Total Assets Choose Numerator: 1 Choose Denominator: Return On Total Assets Return on total assets % % 2017 HHH 2016