Question
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
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 | 2 Yrs Ago | ||||||||
| Assets | |||||||||||
| Cash | $ | 31,400 | $ | 35,250 | $ | 37,400 | |||||
| Accounts receivable, net | 89,500 | 63,000 | 50,500 | ||||||||
| Merchandise inventory | 111,500 | 80,400 | 54,000 | ||||||||
| Prepaid expenses | 10,400 | 9,200 | 5,400 | ||||||||
| Plant assets, net | 277,000 | 258,000 | 235,000 | ||||||||
| Total assets | $ | 519,800 | $ | 445,850 | $ | 382,300 | |||||
| Liabilities and Equity | |||||||||||
| Accounts payable | $ | 130,000 | $ | 76,000 | $ | 50,200 | |||||
| Long-term notes payable secured by mortgages on plant assets | 97,500 | 98,000 | 82,400 | ||||||||
| Common stock, $10 par value | 160,500 | 160,500 | 160,500 | ||||||||
| Retained earnings | 131,800 | 111,350 | 89,200 | ||||||||
| Total liabilities and equity | $ | 519,800 | $ | 445,850 | $ | 382,300 | |||||
The companys income statements for the Current Year and 1 Year Ago, follow.
| For Year Ended December 31 | Current Yr | 1 Yr Ago | ||||||||||
| Sales | $ | 725,000 | $ | 630,000 | ||||||||
| Cost of goods sold | $ | 435,000 | $ | 403,200 | ||||||||
| Other operating expenses | 224,750 | 157,500 | ||||||||||
| Interest expense | 11,200 | 12,600 | ||||||||||
| Income tax expense | 9,300 | 8,525 | ||||||||||
| Total costs and expenses | 680,250 | 581,825 | ||||||||||
| Net income | $ | 44,750 | $ | 48,175 | ||||||||
| Earnings per share | $ | 2.79 | $ | 3.00 | ||||||||
(1-a) Profit margin ratio. (1-b) Did profit margin improve or worsen in the Current Year versus 1 Year Ago?
Profit margin ratio.
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Did profit margin improve or worsen in the Current Year versus 1 Year Ago?
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(2) Total asset turnover.
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(3-a) Return on total assets. (3-b) Based on return on total assets, did Simon's operating efficiency improve or worsen in the Current Year versus 1 Year Ago?
Return on total assets
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Based on return on total assets, did Simon's operating efficiency improve or worsen in the Current Year versus 1 Year Ago?
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Excel Para Auditores Aplicando Excel A La Auditoria
Authors: Antonio P. Peralta C.
1st Edition
9945803697, 978-9945803693
