Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

How do I calculate? Required information [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Current

How do I calculate?

image text in transcribed
Required information [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 32,000 $ 36,000 $ 37,600 Accounts receivable, net 86 , 200 62,500 49,500 Merchandise inventory 112 , 500 30, 800 54,000 Prepaid expenses 10 , 450 9, 500 4,800 Plant assets, net 279,000 250,000 227,000 Total assets $520, 150 $438, 800 $ 372,900 Liabilities and Equity Accounts payable $128, 800 $ 72, 000 $ Long-term notes payable secured by mortgages on plant assets 96,000 101, 500 83 , 600 Common stock, $10 par value 160, 000 160,000 160,000 Retained earnings 135, 350 105,300 77,700 Total liabilities and equity $520, 150 $438, 800 $ 372,900 The company's income statements for the Current Year and 1 Year Ago, follow. For Year Ended December 31 Current Yr 1 Yr Ago Sales $785, 000 $ 600,000 Cost of goods sold $463, 150 $378,000 Other operating expenses 243, 350 144,00 Interest expense 12 , 400 12 , 600 Income tax expense 9 , 400 Total costs and expenses 728, 300 8, 750 543, 350 Net income $ 56, 700 56 , 650 Earnings per share 3.54 3.54 For both the Current Year and 1 Year Ago, compute the following ratios: (2) Total asset turnover. Total Asset Turnover Choose Numerator: Choose Denominator: Total Asset Turnover Total asset turnover Current Year: 11 11 times 1 Year Ago: times

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

Step: 3

blur-text-image

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

Payroll Accounting

Authors: Bernard J Bieg, Judith A Toland

29th Edition

1337673196, 9781337673198

More Books

Students also viewed these Accounting questions