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[The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net. Merchandise inventory
[The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net. Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Current Year 1 Year Ago 2 Years Ago $ 31,800 89,500 112,500 10,700 278,500 $ 523,000 $ 129,900 Long-term notes payable. Common stock, $10 par value Total liabilities and equity $ 35,625 62,500 $ 37,800 82,500 50,200 54,000 Retained earnings 98,500 9,375 255,000 $ 445,000 $ 75,250 101,500 163,500 104,750 163,500 131,100 $ 523,000 $ 445,000 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 Sales Cost of goods sold Interest expense Other operating expenses Income tax expense Net income Current Year $ 673,500 $ 411,225 209,550 12,100 9,525 642,400 $ 31,100 5,000 230,500 $ 377,500 $ 51,250 83,500 163,500 79,250 $ 377,500 1 Year Ago $ 345,500 134,980 13,300 8,845 Total costs and expenses Earnings per share. For both the Current Year and 1 Year Ago, compute the following ratios: $ 1.90 $ 532,000 502,625 $ 29,375 $ 1.80 Numerator: Current Year: Net income 1 Year Ago: Profit Margin Ratio Denominator: " Profit Margin Ratio H " Profit margin ratio 0 % 0 % Current Year: 1 Year Ago: Denominator: Total Asset Turnover Numerator: Total Asset Turnover / " Total asset turnover 0 times 0 times Compute return on total assets for the current year and one year ago. Current Year: 1 Year Ago: Numerator: Return On Total Assets Denominator: = = Return On Total Assets Return on total assets 0% 0%
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