Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

[The following information applies to the questions displayed below.] Simon Companys year-end balance sheets follow. At December 31 2015 2014 2013 Assets Cash $ 31,000

[The following information applies to the questions displayed below.] Simon Companys year-end balance sheets follow. At December 31 2015 2014 2013 Assets Cash $ 31,000 $ 36,250 $ 37,600 Accounts receivable, net 88,100 63,000 50,000 Merchandise inventory 110,000 83,000 52,500 Prepaid expenses 10,450 9,300 4,800 Plant assets, net 281,000 253,000 226,000 Total assets $ 520,550 $ 444,550 $ 370,900 Liabilities and Equity Accounts payable $ 128,800 $ 75,250 $ 50,200 Long-term notes payable secured by mortgages on plant assets 95,000 100,000 80,600 Common stock, $10 par value 160,500 160,500 160,500 Retained earnings 136,250 108,800 79,600 Total liabilities and equity $ 520,550 $ 444,550 $ 370,900 The companys income statements for the years ended December 31, 2015 and 2014, follow. For Year Ended December 31 2015 2014 Sales $ 765,000 $ 620,000 Cost of goods sold $ 459,000 $ 390,600 Other operating expenses 221,850 148,800 Interest expense 12,100 13,300 Income taxes 9,300 8,775 Total costs and expenses 702,250 561,475 Net income $ 62,750 $ 58,525 Earnings per share $ 3.91 $ 3.65 Evaluate the company's efficiency and profitability by computing the following for 2015 and 2014.

1. Profit Margin Ratio

2. Total Asset Turnover

3. Return on Total Assets

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

Step: 3

blur-text-image

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

Innovation Audit Workbook

Authors: Langdon Morris

1st Edition

B08HBBKKPJ, 979-8682091614

More Books

Students also viewed these Accounting questions

Question

1. Define and explain culture and its impact on your communication

Answered: 1 week ago