Question
At December 31 2015 2014 2013 Assets Cash $ 32,200 $ 35,500 $ 37,600 Accounts receivable, net 86,100 63,500 49,000 Merchandise inventory 110,500 83,600 53,000
| At December 31 |
|
| 2015 |
|
| 2014 |
|
| 2013 |
| Assets |
|
|
|
|
|
|
|
|
|
| Cash |
| $ | 32,200 |
| $ | 35,500 |
| $ | 37,600 |
| Accounts receivable, net |
|
| 86,100 |
|
| 63,500 |
|
| 49,000 |
| Merchandise inventory |
|
| 110,500 |
|
| 83,600 |
|
| 53,000 |
| Prepaid expenses |
|
| 10,450 |
|
| 9,400 |
|
| 5,200 |
| Plant assets, net |
|
| 276,000 |
|
| 253,500 |
|
| 227,000 |
|
|
|
|
| ||||||
| Total assets |
| $ | 515,250 |
| $ | 445,500 |
| $ | 371,800 |
|
|
|
|
| ||||||
| Liabilities and Equity |
|
|
|
|
|
|
|
|
|
| Accounts payable |
| $ | 128,400 |
| $ | 75,250 |
| $ | 50,400 |
| Long-term notes payable secured by mortgages on plant assets |
|
| 98,000 |
|
| 98,250 |
|
| 81,200 |
| Common stock, $10 par value |
|
| 163,000 |
|
| 163,000 |
|
| 163,000 |
| Retained earnings |
|
| 125,850 |
|
| 109,000 |
|
| 77,200 |
|
|
|
|
| ||||||
| Total liabilities and equity |
| $ | 515,250 |
| $ | 445,500 |
| $ | 371,800 |
|
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|
|
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The companys income statements for the years ended December 31, 2015 and 2014, follow. |
For Year Ended December 31 | 2015 | 2014 | |||||||||
Sales |
|
|
| $ | 665,000 |
|
|
|
| $ | 530,000 |
Cost of goods sold | $ | 405,650 |
|
|
|
| $ | 333,900 |
|
|
|
Other operating expenses |
| 206,150 |
|
|
|
|
| 127,200 |
|
|
|
Interest expense |
| 11,400 |
|
|
|
|
| 12,900 |
|
|
|
Income taxes |
| 9,400 |
|
|
|
|
| 8,750 |
|
|
|
|
|
|
|
|
|
|
| ||||
Total costs and expenses |
|
|
|
| 632,600 |
|
|
|
|
| 482,750 |
|
|
|
|
|
|
|
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Net income |
|
|
| $ | 32,400 |
|
|
|
| $ | 47,250 |
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Earnings per share |
|
|
| $ | 1.99 |
|
|
|
| $ | 2.90 |
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Evaluate the company's efficiency and profitability by computing the following for 2015 and 2014. |
A)
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B)
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C)
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