Question
Simon Company's year-end balance sheets follow. At December 31 Current Year 1 Year Ago 2 Years Ago Assets Cash $ 35,313 $ 40,468 $ 41,733
Simon Company's year-end balance sheets follow.
| At December 31 | Current Year | 1 Year Ago | 2 Years Ago |
| Assets |
|
|
|
| Cash | $ 35,313 | $ 40,468 | $ 41,733 |
| Accounts receivable, net | 103,351 | 71,527 | 54,519 |
| Merchandise inventory | 129,944 | 95,454 | 59,254 |
| Prepaid expenses | 10,814 | 10,729 | 4,684 |
| Plant assets, net | 307,364 | 287,672 | 265,610 |
| Total assets | $ 586,786 | $ 505,850 | $ 425,800 |
| Liabilities and Equity |
|
|
|
| Accounts payable | $ 147,571 | $ 83,779 | $ 57,892 |
| Long-term notes payable | 109,213 | 114,019 | 95,984 |
| Common stock, $10 par value | 163,500 | 162,500 | 163,500 |
| Retained earnings | 166,502 | 145,552 | 108,424 |
| Total liabilities and equity | $ 586,786 | $ 505,850 | $ 425,800 |
The companys income statements for the Current Year and 1 Year Ago, follow.
| For Year Ended December 31 | Current Year | 1 Year Ago | ||
| Sales |
| $ 762,822 |
| $ 601,962 |
| Cost of goods sold | $ 465,321 |
| $ 391,275 |
|
| Other operating expenses | 236,475 |
| 152,296 |
|
| Interest expense | 12,968 |
| 13,845 |
|
| Income tax expense | 9,917 |
| 9,029 |
|
| Total costs and expenses |
| 724,681 |
| 566,445 |
| Net income |
| $ 38,141 |
| $ 35,517 |
| Earnings per share |
| $ 2.35 |
| $ 2.19 |
| Common stock market price, December 31, Current Year | $ 29.00 |
| Common stock market price, December 31, 1 Year Ago | 27.00 |
| Annual cash dividends per share in Current Year | 0.38 |
| Annual cash dividends per share 1 Year Ago | 0.19 |
- Return on equity.
Return On Equity
Numerator:
/
Denominator:
=
Return On Equity
/
=
Return on equity
Current Year:
/
=
%
1 Year Ago:
/
=
%
2. Dividend yield.
Dividend Yield
Numerator:
/
Denominator:
=
Dividend Yield
/
=
Dividend yield
Current Year:
/
=
%
1 Year Ago
/
=
%
3a. Price-earnings ratio on December 31
Price-Earnings Ratio
Numerator:
/
Denominator:
=
Price-Earnings Ratio
/
=
Price-earnings ratio
Current Year:
/
=
1 Year Ago:
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=
3b. Assuming Simon's competitor has a price-earnings ratio of 6, which company has higher market expectations for future growth?
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Preliminary Audit Results Montanas State Employee Compensation 1990
Authors: Waters Consulting Group, Montana. State Employee Compensation Committee
1st Edition
1378152700, 978-1378152706
