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Need help on all parts! Required information Exercise 13-10 Analyzing efficiency and profitability LO P3 [The following information applies to the questions displayed below.] Simon
Need help on all parts!
Required information Exercise 13-10 Analyzing efficiency and profitability LO P3 [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ago 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 secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 31,600 86,300 112,500 10,450 281,000 $521,850 $ 35,750 $ 37,600 61,500 49,500 82,800 54,500 9,400 5,100 257,500 227,000 $446,950 $ 373,700 $128,000 $ 74,500 $ 50,600 97,000 163,500 133, 350 $521,850 100,000 83,600 163,500 163,500 108,950 76,000 $446,950 $ 373,700 The company's income statements for the Current Year and 1 Year Ago, follow. For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Current Yr $ 735,000 $448,350 227,850 11,800 9,400 697,400 $ 37,600 1 Yr Ago $ 570,000 $370,500 136,800 12,800 8,775 528,875 $ 41,125 Net income Earnings per share $ 2.30 $ 2.52 Required 1A Required 1B Profit margin ratio. Profit Margin Ratio Choose Numerator: / Choose Denominator: Il Profit Margin Ratio Profit margin ratio = Current Year: II % 1 Year Ago: / = % Did profit margin improve or worsen in the Current Year versus 1 Year Ago? Profit margin (2) Total asset turnover. Total Asset Turnover Choose Numerator: Choose Denominator: = Total Asset Turnover 1 = Total asset turnover Current Year: II times 1 Year Ago: / II times Required 3A Required 3B Return on total assets Return On Total Assets Choose Numerator: 1 Choose Denominator: = Return On Total Assets 1 = Return on total assets Current Year: 1 % = = 1 Year Ago: 1 % Required 3A Required 3B Based on return on total assets, did Simon's operating efficiency improve or worsen in the Current Year versus 1 Year Ago? Return on total assetsStep by Step Solution
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