i Required information [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity Current Year 1 Year Ago 2 Years Ago $ 27,988 81,119 106,155 9,197 259,602 $ 32,382 59,005 $ 35,492 78,743 8,676 238,488 $ 484,061 $ 417,294 $ 118,121 $ 71,228 97,897 88,273 162,500 85,669 162,500 115,167 $ 484,061 $ 417,294 For both the current year and one year ago, compute the following ratios: 47,795 50,907 3,865 220,441 $ 358,500 $ 47,795 79,229 162,500 68,976 $ 358,500 The company's income statements for the current year and 1 year ago, follow. For Year Ended December 31 Sales Cost of goods sold Interest expense Other operating expenses Income tax expense Total costs and expenses Net income 195,076 10,698 8,181 $ 31,464 Required 1A Required 18 Required 2 Required 3A Required 3B Current Year 1 Year Ago $ 629,279 $ 496,580 Compute total asset turnover for the current year and one year ago. $ 383,860 $ 322,777 125,635 11,421 7,449 597,815 467,282 Total Asset Turnover Numerator: Net sales Denominator: Average total assets Total Asset Turnover = Total asset turnover $ 29,298 Current Year: == $ 1.80 1 Year Ago: = 0 times 0 times Required 1A Required 18 18 Re Required 2 Required 3A Required 3B Earnings per share $ 1.94 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. Compute return on total assets for the current year and one year ago. Return On Total Assets Numerator: Net income Current Year: 1 Year Ago: (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. Denominator: Average total assets Return On Total Assets == Return on total assets = 0% = 0% Required 1A Required 1B Required 2 Required 3A Required 3B Profit Margin Ratio Numerator: Net income Current Year: 1 Year Ago: 1 Denominator: = Profit Margin Ratio 7 Net sales Profit margin ratio = 0% S 8 9 I of 15 11 0% Next >