Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Simon Company's year-end balance sheets follow. At Dec 31. current yr 1 yr ago. 2 yrs ago Assets Cash 30,200 36,250 37,200 Acc Rec, net
Simon Company's year-end balance sheets follow.
At Dec 31. current yr 1 yr ago. 2 yrs ago
Assets
Cash 30,200 36,250 37,200
Acc Rec, net 87,700 63,000 50,000
Merch Inv 110,500 80,600 54,500
Prep exp 10,500 9,350 4,700
Plant Assets net 280,000 254,500 227,000
Total Assets 518,900 443,700 373,400
Liabilities and Equity
Accs Payable 128,400 73,500 50,400
Long terms notes payable :
98,000 101,250 80,600
Common stock $ 10 per value:
162, 500 162,500 162,500
Retained earning :
130,000 106,450 79,900
Total Liabilities and Equity:
518,900 443,700 373,400
The company's income statements for the Current Year and 1 Year ago follow.
For yr ended Dec 31 Current yr 1 yr ago
Sales 715,000 560,000
Cost of Good Sold:
443,300 347,200
Other operating Expenses:
221,650 134,400
Interest Expense:
11,700 12,900
Income tax expense:
9,400 8,575
Total costs and exps 686,050 503,075
Net Income 28,950 56,925
Earning per share 1.78 3.50
REQUIREMENTS:
Compute the followings ratios:
Ratio. current yr. 1 yr ago Its the current yr
ratio better or
worse than last
year?
1) Current Ratio
2) Acid Test Ratio
3) Return on Assets
4)Asset Turnover
5)Accounts Receivable Turnover
6) Inventary Turnover
7) Debt Ratio
8) Equity Ratio
9) Debt to Equity Ratio
10)Profit Margin Ratio
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started