Exercise 13-10 Analyzing efficiency and profitability LO P3

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[The following information applies to the questions displayed below.] Simon Companys year-end balance sheets follow.

At December 31	Current Yr					1 Yr Ago			2 Yrs Ago
Assets
Cash		$	31,400			$	35,750		$	38,600
Accounts receivable, net			87,000				62,500			51,000
Merchandise inventory			112,000				83,200			54,000
Prepaid expenses			10,650				9,350			4,700
Plant assets, net			282,000				250,000			225,000
Total assets		$	523,050			$	440,800		$	373,300
Liabilities and Equity
Accounts payable		$	130,000			$	73,750		$	50,800
Long-term notes payable secured by mortgages on plant assets			97,500				99,750			82,600
Common stock, $10 par value			161,500				161,500			161,500
Retained earnings			134,050				105,800			78,400
Total liabilities and equity		$	523,050			$	440,800		$	373,300

The companys income statements for the Current Year and 1 Year Ago, follow.

For Year Ended December 31	Current Yr						1 Yr Ago
Sales				$	725,000					$	570,000
Cost of goods sold	$	427,750					$	353,400
Other operating expenses		232,000						142,500
Interest expense		11,400						12,700
Income tax expense		9,550						8,900
Total costs and expenses					680,700						517,500
Net income				$	44,300					$	52,500
Earnings per share				$	2.74					$	3.25

For both the Current Year and 1 Year Ago, compute the following ratios:

Exercise 13-10 Part 2

(2) Total asset turnover.