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. 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 Current Yr 1 Yr Ago 2 Yrs Ago $ 31,800 $ 35,625 $ 37,800 89,500 62,500 50,200 112,500 82,500 54,000 10, 700 9,375 5,000 278,500 255,000 230,500 $523,000 $445,000 $377,500 $129,900 $ 75,250 $ 51,250 98,500 101,500 83,500 163,500 163,500 163,500 131, 100 104,750 79,250 $523,000 $445,000 $377,500 The company's income statements for the current year and 1 year ago, follow. Yor Year Ended December 31 Current ye 1 Yr Ago Sales $673,500 $ 532,000 Cost of goods sold $411,225 $345,500 Other operating expenses 209,550 134,980 Interest expense 12,100 13,300 Income tax expense 9,525 8,845 Total costs and expenses 642,400 502,625 Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It doe Total liabilities and equity $523,000 $445,000 $377,500 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 $673,500 $ 532,000 Cost of goods sold $411,225 $345,500 Other operating expenses 209,550 134,980 Interest expense 12,100 13,300 Income tax expense 9,525 8,845 Total costs and expenses 642,400 502,625 Net income $ 31, 100 $ 29,375 Earnings per share $ 1.90 $ 1.80 For both the Current Year and 1 Year Ago, compute the following ratios: Exercise 13-10 Part 1 (1-a) Profit margin ratio. (1-6) Did profit margin improve or worsen in the Current Year versus 1 Year Ago? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1A Required 1B Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not i Exercise 13-10 Part 1 (1-a) Profit margin ratio. (1-b) Did profit margin improve or worsen in the Current Year versus 1 Year Ago? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1A Required 18 Profit margin ratio Choose Numerator: Net income Profit Margin Ratio + Choose Denominator: 1 Net sales 52,725 / $ 673,500 51,520 / $ 532,000 > Profit Margin Ratio Profit margin ratio 7.8 % S Current Year: 1 Year Ago: $ 9.7 % Required Required 18 )
