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Required information [The following information applies to the questions displayed below.] Simon Companys year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago
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[The following information applies to the questions displayed below.] Simon Companys year-end balance sheets follow.
At December 31 | Current Yr | 1 Yr Ago | 2 Yrs Ago | ||||||||
Assets | |||||||||||
Cash | $ | 30,600 | $ | 35,750 | $ | 37,600 | |||||
Accounts receivable, net | 87,200 | 63,500 | 50,500 | ||||||||
Merchandise inventory | 110,500 | 81,600 | 53,500 | ||||||||
Prepaid expenses | 10,450 | 9,300 | 4,700 | ||||||||
Plant assets, net | 278,000 | 257,500 | 232,000 | ||||||||
Total assets | $ | 516,750 | $ | 447,650 | $ | 378,300 | |||||
Liabilities and Equity | |||||||||||
Accounts payable | $ | 129,200 | $ | 72,750 | $ | 50,800 | |||||
Long-term notes payable secured by mortgages on plant assets | 97,000 | 101,500 | 80,800 | ||||||||
Common stock, $10 par value | 160,500 | 160,500 | 160,500 | ||||||||
Retained earnings | 130,050 | 112,900 | 86,200 | ||||||||
Total liabilities and equity | $ | 516,750 | $ | 447,650 | $ | 378,300 | |||||
The companys income statements for the Current Year and 1 Year Ago, follow.
For Year Ended December 31 | Current Yr | 1 Yr Ago | ||||||||||
Sales | $ | 765,000 | $ | 550,000 | ||||||||
Cost of goods sold | $ | 474,300 | $ | 346,500 | ||||||||
Other operating expenses | 244,800 | 132,000 | ||||||||||
Interest expense | 12,200 | 13,200 | ||||||||||
Income tax expense | 9,450 | 8,775 | ||||||||||
Total costs and expenses | 740,750 | 500,475 | ||||||||||
Net income | $ | 24,250 | $ | 49,525 | ||||||||
Earnings per share | $ | 1.51 | $ | 3.09 | ||||||||
For both the Current Year and 1 Year Ago, compute the following ratios:
(2) Total asset turnover.
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