Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Simon Companys year-end balance sheets follow. At December 31 2015 2014 2013 Assets Cash $ 30,200 $ 36,500 $ 38,000 Accounts receivable, net 88,100 62,500
Simon Companys year-end balance sheets follow. |
At December 31 | 2015 | 2014 | 2013 | |||||||
Assets | ||||||||||
Cash | $ | 30,200 | $ | 36,500 | $ | 38,000 | ||||
Accounts receivable, net | 88,100 | 62,500 | 51,000 | |||||||
Merchandise inventory | 111,000 | 83,600 | 53,500 | |||||||
Prepaid expenses | 10,950 | 9,200 | 5,400 | |||||||
Plant assets, net | 279,000 | 250,000 | 232,000 | |||||||
Total assets | $ | 519,250 | $ | 441,800 | $ | 379,900 | ||||
Liabilities and Equity | ||||||||||
Accounts payable | $ | 128,000 | $ | 75,750 | $ | 51,000 | ||||
Long-term notes payable secured by mortgages on plant assets | 97,500 | 99,500 | 81,000 | |||||||
Common stock, $10 par value | 160,500 | 160,500 | 160,500 | |||||||
Retained earnings | 133,250 | 106,050 | 87,400 | |||||||
Total liabilities and equity | $ | 519,250 | $ | 441,800 | $ | 379,900 | ||||
The companys income statements for the years ended December 31, 2015 and 2014, follow. |
For Year Ended December 31 | 2015 | 2014 | |||||||||
Sales | $ | 695,000 | $ | 590,000 | |||||||
Cost of goods sold | $ | 417,000 | $ | 371,700 | |||||||
Other operating expenses | 201,550 | 135,700 | |||||||||
Interest expense | 11,600 | 12,800 | |||||||||
Income taxes | 9,450 | 8,700 | |||||||||
Total costs and expenses | 639,600 | 528,900 | |||||||||
Net income | $ | 55,400 | $ | 61,100 | |||||||
Earnings per share | $ | 3.45 | $ | 3.81 | |||||||
Evaluate the company's efficiency and profitability by computing the following for 2015 and 2014. |
25. Required information
(1) | Profit margin ratio. |
Hints eBook & Resources Hint #1Check my work
26. Required information
(2) | Total asset turnover. |
Hints eBook & Resources Hint #1Check my work
27. Required information
(3) | Return on total assets. |
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