Exercise 13-11 Analyzing profitability LO P3 Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Current Yr 1 Yr Ago 2 Yrs Ago $ 31,400 $ 34,800 $ 36,500 89,500 64,300 55,300 59,514 82,400 59,000 10,450 9,030 4,151 359,136 239,470 215,049 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 $550,000 $430,000 $370,000 $141,059 $ 74,850 $ 47,863 102,366 97,911 83,405 162,500 162,500 162,500 94,739 76,232 144,075 $550,000 $430,000 $370,000 The company's income statements for the Current Year and 1 Year Ago, follow. For Year Ended December 31 Sales 1 Yr Ago Current Yr $715,000 $511,700 Cost of goods sold $436,150 $332,605 Other operating expenses 221,650 Interest expense 12,155 Income tax expense 9,295 Total costs and expenses Net income Earnings per share 679,250 $ 35,750 $ 2.20 129,460 11,769 7,676 481,510 $ 30,190 $ 1.86