Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information [The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. At December 31 Curront yr 1 yr Ago

image text in transcribed
image text in transcribed
image text in transcribed
Required information [The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. At December 31 Curront yr 1 yr Ago 2 Yrs Ago Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net $ 38,450 89,500 111,500 12,382 380,887 $632,719 $ 44,945 $ 44,999 62,400 51,900 82,500 60,000 11,798 5,000 343,804 279,401 $ 545,447 $441,300 Total assets $162, 273 $ 94,946 $ 59,999 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 122,520 162,500 185,426 $632,719 129,216 162,500 158,785 100, 453 162,500 118,348 $ 545,447 $ 441,300 The company's income statements for the Current Year and 1 Year Ago, follow. Assume that all sales are on credit: 1 Yr Ago $ 649,082 For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Current Yr $ 822,535 $ 501,746 254,986 13,983 10,693 781, 408 $ 41,127 $ 421,903 164,218 14,929 9,736 610, 786 $ 38,296 $ 2.53 2.36 $ Earnings per share $ Net income 41,127 $ 38,296 $ 2.53 $ 2.36 Earnings per share (3-a) Compute inventory turnover. (3-b) For each ratio, determine if it improved or worsened in the current year. Complete this question by entering your answers in the tabs below. Required 3A Required 3B Compute inventory turnover. Inventory Turnover 1 Choose Denominator: Inventory Turnover Choose Numerator: Cost of goods sold / Average inventory Inventory turnover 11 / 0 times 0 times Current Yr: 1 1 Yr Ago: Required 3B > Required a 44 > 38,296 Earnings per share $ 2.53 $ 2.36 (3-a) Compute Inventory turnover. (3-6) For each ratio, determine if it improved or worsened in the current year. Complete this question by entering your answers in the tabs below. Required 3A Required 3B For each ratio, determine if it improved or worsened in the current year. Inventory turnover Worsened

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

Students also viewed these Accounting questions