Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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

Net income

$

32,400

$

47,250

Earnings per share

$

1.99

$

2.90

Evaluate the company's efficiency and profitability by computing the following for 2015 and 2014.

A)

Profit Margin Ratio

Choose Numerator:

/

Choose Denominator:

=

Profit Margin Ratio

/

=

Profit margin ratio

2015

/

=

%

2014

/

=

%

B)

Total Asset Turnover

Choose Numerator:

/

Choose Denominator:

=

Total Asset Turnover

/

=

Total asset turnover

2015

/

=

times

2014

/

=

times

C)

Return On Total Assets

Choose Numerator:

/

Choose Denominator:

=

Return On Total Assets

/

=

Return on total assets

2015

/

=

%

2014

/

=

%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Strategic Business Management From Planning To Performance

Authors: Gary Cokins

1st Edition

1937352358, 978-1937352356

More Books

Students also viewed these Accounting questions