Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer the 3 parts of the question (all ynder same question) thank you! Required information Exercise 17-10 Efficiency and profitability analysis LO P3 [The

Please answer the 3 parts of the question (all ynder same question)
thank you!
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Required information Exercise 17-10 Efficiency and profitability analysis LO P3 [The following information applies to the questions displayed below] Simon Company's year-end balance sheets follow. 2017 2016 2015 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 $ 32,000 $35,250 $ 37,600 86,600 61,500 50,000 112,500 81,600 53,500 10,700 9, 200 4,600 280,000 252,500 226,000 $521,800 $440,650 $ 371,700 $128,400 $ 74,000 $ 51,200 96,000 100,750 81,600 162,000 162,000 162,000 135,400 103,300 76,900 $521,800 $440,850 $ 371,700 The company's income statements for the years ended December 31, 2017 and 2016, follow. The company's income statements for the years ended December 31, 2017 and 2016, follow. For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income taxes Total costs and expenses Net income 2017 $695,000 $403, 100 215,450 11,200 9,350 639,109 $ 55,900 2016 $ 620,000 $384,400 148,800 13,400 8,700 555,300 $ 64,700 $ 3.99 Earnings per share $ 3.45 Evaluate the company's efficiency and profitability by computing the following for 2017 and 2016 (1) Profit margin ratio. Choose Numerator: Profit Margin Ratio I Choose Denominator: 7 Profit Margin Ratio Profit margin ratio % 2017 1 1 % 2016 (2) Total asset turnover. Choose Numerator: Total Asset Tumover I Choose Denominator: Total Asset Turnover Total asset turnover 2017 IL times 2016 10 times (3) Return on total assets. Return On Total Assets Choose Denominator: Choose Numerator Return On Total Assets Return on total assets 96 2017 2016 %

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

Accounting For Beginners

Authors: Warren Piper Ruell

1st Edition

1713479397, 978-1713479390

More Books

Students also viewed these Accounting questions

Question

Describe the benefits of studying intersectionality.

Answered: 1 week ago