The companys income statements for the current year and 1 year ago, follow.
Required information Use the following information for the Exercises below. (Algo) {The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. At December 31 Current Year 1 Year Ago 2 Years Ago Assets Cash $ 26,691 $ 29.963 $ 30,618 Accounts receivable, net 75, 060 55, 139 40.000 Merchandise inventory 94,374 70, 719 44,804 Prepaid expenses 8.510 8. 109 3.402 Plant assets. net 243, 271 2224196 193.576 Total assets $ 447,906 $ 386, 126 $ 312,400 Liabilities and Equity Accounts payable $ 108, 183 $ 66, 560 $ 41.640 Long-term notes payable 85, 890 88, 809 66.969 Common stock. $10 par value 163,500 163, 500 162.500 Retained earnings 90 333 62 257 41 282 Total liabilities and equity $ 447,906 $ 386, 126 $ 312.400 For both the current year and one year ago, compute the following ratios: Exercise 17-10 (Algo) Analyzing efficiency and profitability LO P3 Exercise 17-10 (Algo) Analyzing efficiency and profitability LO P3 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 $ 582.278 $ 459, 490 Cost of goods sold $ 355, 190 $ 298, 669 Other operating expenses 180.506 116, 251 Interest expense 9,899 10.568 Income tax expense 72570 6.892 Total costs and expenses 553 165 432380 Net income $ 29.113 $ 27. 110 Earnings per share $ 1.79 $ 1.67 For both the Current Year and 1 Year Ago, compute the following ratios: (1-a) Profit margin ratio (1-6) 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 18 Required 2 Required 3A Required 38 Compute profit margin ratio for the current year and one year ago. Profit Margin Ratio Numerator: Denominator: Profit Margin Ratio Profit margin ratio % 1 Current Year: 1 Year Ago: 1 % Required Required 1B > Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2 Required 3A Required 38 Did profit margin improve or worsen in the Current Year versus 1 Year Ago? Profit margin Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2 Required 3A Required 38 Compute total asset turnover for the current year and one year ago Total Asset Turnover Numerator Denominator Total Asset Turnover Total asset turnover times Current Year: 1 Year Ago: times Complete this question by entering your answers in the tabs below. Required 1A Required 18 Required 2 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 Return on total assets % Current Year: 1 Year Ago: % Complete this question by entering your answers in the tabs below. Required 1A Required 18 Required 2 Required 3A Required 38 Based on return on total assets, did Simon's operating efficiency improve or worsen in the Current Year versus 1 Year Ago? Return on total assets
