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		$	30,400			$	36,000		$	38,200
Accounts receivable, net			87,700				62,500			50,500
Merchandise inventory			110,500				83,200			52,500
Prepaid expenses			10,700				9,300			5,000
Plant assets, net			278,000				257,500			233,000
Total assets		$	517,300			$	448,500		$	379,200
Liabilities and Equity
Accounts payable		$	130,000			$	76,000		$	50,000
Long-term notes payable secured by mortgages on plant assets			97,500				100,500			82,800
Common stock, $10 par value			162,000				162,000			162,000
Retained earnings			127,800				110,000			84,400
Total liabilities and equity		$	517,300			$	448,500		$	379,200

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					$	550,000
Cost of goods sold	$	449,500					$	352,000
Other operating expenses		224,750						132,000
Interest expense		11,900						13,200
Income tax expense		9,400						8,550
Total costs and expenses					695,550						505,750
Net income				$	29,450					$	44,250
Earnings per share				$	1.82					$	2.73

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

Exercise 13-10 Part 2

(2) Total asset turnover.

Total Asset Turnover 1 Choose Denominator: Choose Numerator: II 1 Total Asset Turnover Total asset turnover times times 1 Current Year: 1 Year Ago: 11