Required information [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 $ 31,800 $ 35,250 $ 38,000 88,000 61,000 49,000 111,500 83,400 53,500 10,600 9,450 5,400 281,000 258,500 226,000 $522,900 $447,600 $371,900 $128,800 $ 73,000 $ 51,400 97,500 99,500 82,600 160,500 160,500 160,500 136, 100 114,600 77,400 $522,900 $447,600 $371,900 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 $675,000 $405,000 202,500 11,700 9,500 628,700 $ 46,300 2.88 2016 $570,000 $364,800 142,500 12,900 8,825 529,025 $ 40,975 $ 2.55 Earnings per share Evaluate the company's efficiency and profitability by computing the following for 2017 and 2016. (1) Profit margin ratio. Profit Margin Ratio 1 Choose Denominator: Choose Numerator: Profit Margin Ratio Profit margin ratio 1 % 2017 2016 % Required information [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 $ 31,800 $ 35,250 $ 38,000 88,000 61,000 49,000 111,500 83,400 53,500 10,600 9,450 5,400 281,000 258,500 226,000 $522,900 $447,600 $371,900 $128,800 $ 73,000 $ 51,400 97,500 99,500 82,600 160,500 160,500 160,500 136,100 114,600 77,400 $522,900 $447,600 $371,900 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 $675,000 $405,000 202,500 11,700 9,500 628,700 $ 46,300 $ 2.88 2016 $570,000 $364,800 142,500 12,900 8,825 529, 025 $ 40,975 $ 2.55 Evaluate the company's efficiency and profitability by computing the following for 2017 and 2016. (2) Total asset turnover. Total Asset Turnover Choose Denominator: Choose Numerator: Total Asset Turnover Total asset turnover 2017 times 2016 times Required information [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 $ 31,800 $ 35,250 $ 38,000 88,000 61,000 49,000 111,500 83,400 53,500 10,600 9,450 5,400 281,000 258,500 226,000 $522,900 $447,600 $371,900 $128, 800 $ 73,000 $ 51,400 97,500 99,500 82,600 160,500 160,500 160,500 136, 100 114,600 77,400 $522,900 $447,600 $371,900 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 $675,000 $405,000 202,500 11,700 9,500 628,700 $ 46,300 $ 2.88 2016 $570,000 $364,800 142,500 12,900 8,825 529, 025 $ 40,975 $ 2.55 Evaluate the company's efficiency and profitability by computing the following for 2017 and 2016. (3) Return on total assets. Return On Total Assets I Choose Denominator: Choose Numerator: Return On Total Assets Return on total assets % 2017 / II 2016 1 11 %
