Exercise 17-6 Common-size percents LO P2

Simon Company's year-end balance sheets

At December 31 2017 2016 2015 Assets Cash $29,132 $33,372 $35,472 Accounts receivable, net 82,745 60,784 47,769 Merchandise inventory 107,221 78,747 50,370 Prepaid expenses 9,569 8,760 3,941 Plant assets, net 265,099 243,997 220,748 Total assets $493,766 $425,660 $358,300 Liabilities and Equity Accounts payable $120,489 $73,375 $47,769 Long-term notes payable secured by mortgages on plant assets 94,685 100,839 77,601 Common stock, $10 par value 163,500 163,500 163,500 Retained earnings 115,092 87,946 69,430 Total liabilities and equity $493,766 $425,660 $358,300

SIMON COMPANY
Common-Size Comparative Balance Sheets
December 31, 2015-2017
	2017		2016		2015
Assets
Cash	82.0	%	94.0	%	100.0	%
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 17-10 Efficiency and profitability analysis LO P3

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[The following information applies to the questions displayed below.] Simon Companys year-end balance sheets follow.

At December 31	2017			2016			2015
Assets
Cash	$	31,800		$	35,250		$	37,600
Accounts receivable, net		87,900			62,000			50,500
Merchandise inventory		111,500			80,000			53,000
Prepaid expenses		11,000			9,450			4,500
Plant assets, net		278,000			254,000			226,000
Total assets	$	520,200		$	440,700		$	371,600
Liabilities and Equity
Accounts payable	$	128,400		$	73,250		$	50,200
Long-term notes payable secured by mortgages on plant assets		97,500			98,500			81,200
Common stock, $10 par value		161,500			161,500			161,500
Retained earnings		132,800			107,450			78,700
Total liabilities and equity	$	520,200		$	440,700		$	371,600

The companys income statements for the years ended December 31, 2017 and 2016, follow.

For Year Ended December 31	2017						2016
Sales				$	765,000					$	550,000
Cost of goods sold	$	459,000					$	352,000
Other operating expenses		229,500						137,500
Interest expense		12,100						13,000
Income taxes		9,350						8,675
Total costs and expenses					709,950						511,175
Net income				$	55,050					$	38,825
Earnings per share				$	3.41					$	2.40

Evaluate the company's efficiency and profitability by computing the following for 2017 and 2016. 1)

Profit Margin Ratio
	Choose Numerator:	/	Choose Denominator:	=	Profit Margin Ratio
		/		=	Profit margin ratio
2017		/		=		%
2016		/		=		%

2)

Total Asset Turnover
	Choose Numerator:	/	Choose Denominator:	=	Total Asset Turnover
		/		=	Total asset turnover
2017		/		=		times
2016		/		=		times

3)

Return On Total Assets
	Choose Numerator:	/	Choose Denominator:	=	Return On Total Assets
		/		=	Return on total assets
2017		/		=		%
2016		/		=		%