Simon Company's year-end balance sheets follow. At December 31 Current Year Assets Cash $ 31,800 Accounts receivable, net 89,500 Merchandise inventory 112,500 Prepaid expenses 10,700 Plant assets, net 278,500 Total assets $ 523,000 Liabilities and Equity Accounts payable $ 129,900 Long-term notes payable 98,580 Common stock, $10 par value 163,500 Retained earnings 131, 100 Total liabilities and equity $ 523,000 1 Year Ago 2 Years Ago $ 35,625 $ 37,800 62,500 50,200 82,500 54,000 9,375 5,000 255,000 230,500 $ 445,000 $ 377,500 $ 75,250 101,500 163,500 104,750 $ 445,000 $ 51,250 83,500 163,500 79,250 $ 377,500 For both the current year and one year ago, compute the following ratios: The company's income statements for the current year and 1 year ago, follow. For Year Ended December 31 Current Year 1 Year Ago Sales $ 673,500 $ 532,000 Cost of goods sold $ 411,225 $ 345,500 Other operating expenses 209,550 134,980 Interest expense 12,100 13,300 Income tax expense 9,525 Total costs and expenses 642,400 582,625 Net income $ 31,180 5 29,375 Earnings per share $ 1.90 $ 1.80 For both the current Year and 1 Year Ago, compute the following ratios: 8,845 (1-a) Profit margin ratio. (1-b) Did profit margin improve or worsen in the Current Year versus 1 Year Ago? (2) Total asset turnover 1.00 For both the Current Year and 1 Year Ago, compute the following ratios: (1-a) Profit margin ratio (1-b) Did profit margin improve or worsen in the Current Year versus 1 Year Ago? (2) Total asset turnover. (3-a) Return on total assets. (3-6) Based on return on total assets, did Simon's operating efficiency improve or worsen in the Current Year versus 1 Year Ago? Complete this question by entering your answers in the tabs below. Required 1A Required 18 Required 2 Required 3A Required 38 Compute profit margin ratio for the current year and one year ago Profit Margin Ratio Denominator Numerator Profit Margin Ratio Profit marginal 0 % 0 % Current Year: 1 Year Aga: Required> 1. For both the Current Year and 1 Year Ago, compute the following ratios (1-a) Profit margin ratio. (1-b) Did profit margin improve or worsen in the Current Year versus 1 Year Ago? (2) Total asset turnover, (3-a) Return on total assets. (3-6) Based on return on total assets, did Simon's operating efficiency improve or worsen in the Current Year versus 1 Year Ago? Complete this question by entering your answers in the tabs below. Required 1A Required 18 Required 2 Required 3A Required 38 Compute total asset turnover for the current year and one year ago Numerator Total Asset Turnover Denominator 1 Total Asset Turnover Total asset turnover os Current Year: 1 Year Age: Otimes Required 10 Required SA > $ 1.90 $ 1.6 For both the Current Year and 1 Year Ago, compute the following ratios (1-a) Profit margin ratio. (1-b) Did profit margin improve or worsen in the Current Year versus 1 Year Ago? (2) Total asset turnover. (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? Complete this question by entering your answers in the tabs below. Required 1A Required 10 Required 2 Required A Required 38 Compute return on total assets for the current year and one year ago Return On Total Assets Denominator Return On Total Assets Numuru Current Year: 1 Year Ago: Retum on totta 0 % 0 % Required Required 36 >
