Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Simon Company's year-end balance sheets follow. Current Year 1 Year Ago 2 Years Ago At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Simon Company's year-end balance sheets follow. Current Year 1 Year Ago 2 Years Ago At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity $ 30,800 86,100 112,000 10,400 281,000 $ 520,300 $ 35,250 62,000 83,000 9,500 249,500 $ 439,250 $ 37,800 50,000 54,500 4,100 227,000 $ 373,400 $ 129,200 96,500 160,500 134,100 $ 520,300 $ 75,500 98,500 160,500 104,750 $ 439, 250 $ 51,400 83,600 160,500 77,900 $ 373,400 The company's income statements for the Current Year and 1 Year Ago, follow. For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Current Year $ 775,000 $ 480,500 240, 250 11,600 9,350 741,700 $ 33,300 $ 2.07 1 Year Ago $ 590,000 $365,800 135, 700 12,800 8,575 522,875 $ 67,125 Not income Earnings per share $ 4.18 For both the Current Year and 1 Year Ago, compute the following ratios: (1-a) Compute profit margin ratio for the current year and one year ago (1-b) Did profit margin improve or worsen in the Current Year versus 1 Year Ago? (1-a) Compute profit margin ratio for the current year and one year ago. (1-b) Did profit margin 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 Compute profit margin ratio for the current year and one year ago. Profit Margin Ratio Denominator: Numerator: Profit Margin Ratio Profit margin ratio 0 % Current Year 1 Year Ago: # 0 % Required 1B > (2) Compute total asset turnover for the current year and one year ago Total Assot Turnover Denominator: Numerator: Total Asset Turnover Total asset turnover Current Year: times 1 Year Ago: times Required 3A Required 3B Compute return on total assets for the current year and one year ago. Return On Total Assets Numerator: Denominator: Return On Total Assets Current Year: 1 Year Ago: Return on total assets 0 % 0 % Required 3B >

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting For Undergraduates

Authors: James Wallace, Scott Hobson, Theodore Christensen

2nd Edition

1618533096, 9781618533098

More Books

Students also viewed these Accounting questions