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 $ 39,800 $ 36,250 $ 37,489 86, eee 63, eee 49,00 110, eee 81,880 55,000 10, 300 9,480 5,388 280, eee 258,888 231,000 $517,100 $448,450 $ 377,700 $129,600 $ 72,588 $ 50,489 96, see 181,250 82,800 163, eee 163,080 163,88 128,00 111,789 81,500 $517,100 $448,450 $ 377,789 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 $715,000 $436,150 207,350 11,200 9,40e 664,100 $ 58,988 2016 $ 530,00 $339,200 132,500 12,700 8,675 493,975 $ 36,925 Earnings per share $ 3.12 $ 2.27 Evaluate the company's efficiency and profitability by computing the following for 2017 and 2016. Exercise 17-10 Part 1 (1) Profit margin ratio Profit Margin Ratio 1 Choose Denominator: Choose Numerator: = Profit Margin Ratio Profit margin ratio 1 11 2017 1 96 2016 96 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 $ 39,800 $ 36,250 $ 37,480 86,eee 63,eee 49,000 110, eee 81,800 55,000 10, 30e 9,400 5,380 280, eee 258, eee 231,080 $517,100 $448,450 $ 377,780 $129,628 $ 72,5ee $58,480 96,500 181,250 82,880 163, eee 163, eee 163,080 128, eee 111,700 81,58e $517,100 $448,450 $ 377,780 The company's income statements for the years ended December 31, 2017 and 2016, follow. For Year Ended December 31 2017 2016 Sales $715,080 $530,80 Cost of goods sold $436,150 $339,280 Other operating expenses 207,350 132,500 Interest expense 11,200 12,700 Income taxes 9,480 8,675 Total costs and expenses 664,100 493,075 Net income $ 58,990 $36, 925 Earnings per share $ 3.12 $ 2.27 Evaluate the company's efficiency and profitability by computing the following for 2017 and 2016. Exercise 17-10 Part 2 (2) Total asset turnover. Total Asset Turnover 1 Choose Denominator: Choose Numerator: = ! Total Asset Turnover Total asset turnover times 2017 = 2016 1 times 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 Liabilit: 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 $ 39,800 $ 36,250 $ 37,480 86, cea 63,800 49,00 11e, een 81, 8ee 55,00 10,300 9, 4ee 5,390 280, eee 258, Bee 23183 $517,100 $448,450 $ 377,790 $129, 6e0 $ 72,5ee $58,480 96,500 191,250 82,890 163, Bee 163, eee 163,080 128,eee 111,700 81,58e $517,100 $448,450 $ 377,780 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 Earnings per share 2017 $715,000 $436,150 207,350 11,290 9,480 4,18 $ 59,900 $ 3.12 2016 $ 530,000 $339,20e 132,500 12,780 8,675 493, $ 36,925 $ 2.27 Evaluate the company's efficiency and profitability by computing the following for 2017 and 2016. Exercise 17-10 Part 3 (3) Return on total assets. Return On Total Assets 1 Choose Denominator: Choose Numerator: Return On Total Assets Return on total assets 96 2017 / = 2016