Exercise 17-10 (Algo) Analyzing efficiency and profitability LO P3

The companys income statements for the current year and 1 year ago, follow.

For Year Ended December 31	Current Year	1 Year Ago
Sales		$ 659,419		$ 520,363
Cost of goods sold	$ 402,246		$ 338,236
Other operating expenses	204,420		131,652
Interest expense	11,210		11,968
Income tax expense	8,572		7,805
Total costs and expenses		626,448		489,661
Net income		$ 32,971		$ 30,702
Earnings per share		$ 2.03		$ 1.89

For both the Current Year and 1 Year Ago, compute the following ratios:

(1-a) Profit margin ratio.

(1-b) Did profit margin improve or worsen in the Current Year versus 1 Year Ago?

(2) Total asset turnover.

(3-a) Return on total assets.

(3-b) Based on return on total assets, did Simon's operating efficiency improve or worsen in the Current Year versus 1 Year Ago?

Required information

Use the following information for the Exercises below. (Algo)

Skip to question

[The following information applies to the questions displayed below.]

Simon Company's year-end balance sheets follow.

At December 31	Current Year	1 Year Ago	2 Years Ago
Assets
Cash	$ 29,030	$ 34,982	$ 36,436
Accounts receivable, net	89,341	62,444	49,063
Merchandise inventory	107,967	83,324	50,710
Prepaid expenses	9,734	9,091	3,928
Plant assets, net	271,173	247,439	224,263
Total assets	$ 507,245	$ 437,280	$ 364,400
Liabilities and Equity
Accounts payable	$ 122,515	$ 73,900	$ 47,620
Long-term notes payable	93,455	98,563	81,338
Common stock, $10 par value	163,500	163,500	162,500
Retained earnings	127,775	101,317	72,942
Total liabilities and equity	$ 507,245	$ 437,280	$ 364,400

For both the current year and one year ago, compute the following ratios:

Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. For both the current year and one year ago, compute the following ratios: For both the Current Year and 1 Year Ago, compute the following ratios: (1-a) Profit margin ratio. (1-b) Did profit margin improve or worsen in the Current Year versus 1 Year Ago? (2) Total asset turnover. (3-a) Return on total assets. (3-b) Based on return on total assets, did Simon's operating efficiency improve or worsen in the Current Year versus 1 Year Ago? Complete this question by entering your answers in the tabs below. Did profit margin improve or worsen in the Current Year versus 1 Year Ago? For both the Current Year and 1 Year Ago, compute the following ratios: (1-a) Profit margin ratio. (1-b) Did profit margin improve or worsen in the Current Year versus 1 Year Ago? (2) Total asset turnover. (3-a) Return on total assets. (3-b) Based on return on total assets, did Simon's operating efficiency improve or worsen in the Current Year versus 1 Year Ago? Complete this question by entering your answers in the tabs below. Compute return on total assets for the current year and one year ago. For both the Current Year and 1 Year Ago, compute the following ratios: (1-a) Profit margin ratio. (1-b) Did profit margin improve or worsen in the Current Year versus 1 Year Ago? (2) Total asset turnover. (3-a) Return on total assets. (3-b) Based on return on total assets, did Simon's operating efficiency improve or worsen in the Current Year versus 1 Year Ago? Complete this question by entering your answers in the tabs below. Based on return on total assets, did Simon's operating efficiency improve or worsen in the Current Year versus 1 Year Ago? For both the Current Year and 1 Year Ago, compute the following ratios: (1-a) Profit margin ratio. (1-b) Did profit margin improve or worsen in the Current Year versus 1 Year Ago? (2) Total asset turnover. (3-a) Return on total assets. (3-b) Based on return on total assets, did Simon's operating efficiency improve or worsen in the Current Year versus 1 Year Ago? Complete this question by entering your answers in the tabs below. Compute profit margin ratio for the current year and one year ago. For both the Current Year and 1 Year Ago, compute the following ratios: (1-a) Profit margin ratio. (1-b) Did profit margin improve or worsen in the Current Year versus 1 Year Ago? (2) Total asset turnover. (3-a) Return on total assets. (3-b) Based on return on total assets, did Simon's operating efficiency improve or worsen in the Current Year versus 1 Year Ago? Complete this question by entering your answers in the tabs below. Compute total asset turnover for the current year and one year ago. Exercise 1710 (Algo) Analyzing efficiency and profitability LO P3 The company's income statements for the current year and 1 year ago, follow. For both the Current Year and 1 Year Ago, compute the following ratios: (1-a) Profit margin ratio. (1-b) Did profit margin improve or worsen in the Current Year versus 1 Year Ago? (2) Total asset turnover. (3-a) Return on total assets. (3-b) Based on return on total assets, did Simon's operating efficiency improve or worsen in the Curre Ago