i Required information [The following information applies to the questions displayed below.] Simon Company's year-end balance...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
i Required information [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 Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity Current Year 1 Year Ago 2 Years Ago $ 27,988 81,119 106,155 9,197 259,602 $ 32,382 59,005 $ 35,492 78,743 8,676 238,488 $ 484,061 $ 417,294 $ 118,121 $ 71,228 97,897 88,273 162,500 85,669 162,500 115,167 $ 484,061 $ 417,294 For both the current year and one year ago, compute the following ratios: 47,795 50,907 3,865 220,441 $ 358,500 $ 47,795 79,229 162,500 68,976 $ 358,500 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 Total costs and expenses Net income 195,076 10,698 8,181 $ 31,464 Required 1A Required 18 Required 2 Required 3A Required 3B Current Year 1 Year Ago $ 629,279 $ 496,580 Compute total asset turnover for the current year and one year ago. $ 383,860 $ 322,777 125,635 11,421 7,449 597,815 467,282 Total Asset Turnover Numerator: Net sales Denominator: Average total assets Total Asset Turnover = Total asset turnover $ 29,298 Current Year: == $ 1.80 1 Year Ago: = 0 times 0 times Required 1A Required 18 18 Re Required 2 Required 3A Required 3B Earnings per share $ 1.94 For both the Current Year and 1 Year Ago, compute the following ratios: (1-a) Profit margin ratio. (1-b) Did profit margin improve or worsen in the Current Year versus 1 Year Ago? (2) Total asset turnover. (3-a) Return on total assets. Compute return on total assets for the current year and one year ago. Return On Total Assets Numerator: Net income Current Year: 1 Year Ago: (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. Denominator: Average total assets Return On Total Assets == Return on total assets = 0% = 0% Required 1A Required 1B Required 2 Required 3A Required 3B Profit Margin Ratio Numerator: Net income Current Year: 1 Year Ago: 1 Denominator: = Profit Margin Ratio 7 Net sales Profit margin ratio = 0% S 8 9 I of 15 11 0% Next > i Required information [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 Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity Current Year 1 Year Ago 2 Years Ago $ 27,988 81,119 106,155 9,197 259,602 $ 32,382 59,005 $ 35,492 78,743 8,676 238,488 $ 484,061 $ 417,294 $ 118,121 $ 71,228 97,897 88,273 162,500 85,669 162,500 115,167 $ 484,061 $ 417,294 For both the current year and one year ago, compute the following ratios: 47,795 50,907 3,865 220,441 $ 358,500 $ 47,795 79,229 162,500 68,976 $ 358,500 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 Total costs and expenses Net income 195,076 10,698 8,181 $ 31,464 Required 1A Required 18 Required 2 Required 3A Required 3B Current Year 1 Year Ago $ 629,279 $ 496,580 Compute total asset turnover for the current year and one year ago. $ 383,860 $ 322,777 125,635 11,421 7,449 597,815 467,282 Total Asset Turnover Numerator: Net sales Denominator: Average total assets Total Asset Turnover = Total asset turnover $ 29,298 Current Year: == $ 1.80 1 Year Ago: = 0 times 0 times Required 1A Required 18 18 Re Required 2 Required 3A Required 3B Earnings per share $ 1.94 For both the Current Year and 1 Year Ago, compute the following ratios: (1-a) Profit margin ratio. (1-b) Did profit margin improve or worsen in the Current Year versus 1 Year Ago? (2) Total asset turnover. (3-a) Return on total assets. Compute return on total assets for the current year and one year ago. Return On Total Assets Numerator: Net income Current Year: 1 Year Ago: (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. Denominator: Average total assets Return On Total Assets == Return on total assets = 0% = 0% Required 1A Required 1B Required 2 Required 3A Required 3B Profit Margin Ratio Numerator: Net income Current Year: 1 Year Ago: 1 Denominator: = Profit Margin Ratio 7 Net sales Profit margin ratio = 0% S 8 9 I of 15 11 0% Next >
Expert Answer:
Related Book For
Horngrens Accounting
ISBN: 978-0133855388
10th Canadian edition Volume 2
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo Ann L. Johnston, Peter R. Norwood
Posted Date:
Students also viewed these accounting questions
-
Describe the Economic Analysis of the Valero Energy Corporation. Demonstrate Valero Energy Corporation is susceptible to Macroeconomic outlook both in the U.S.& foreign markets
-
A baseball is tossed straight up. Taking into consideration the force of air resistance, is the magnitude of the baseball's acceleration zero, less than g, equal to g, or greater than g on the way...
-
Use transformations of the graphs of y = x, y = 3 x, or y = 4 x to graph y = f(x). f(x) = 2x - 1
-
How might a hacker access and manipulate a digital device for illegal purposes? Are the Internet of Things (IoT) devices at risk for hacker access and manipulation?
-
Selected accounts and related amounts for Gloucester Co. for the fiscal year ended August 31, 2014, are presented in Problem 5-5A. In Problem 5-5A, the following selected accounts and their current...
-
1)Consider the crowding out model. Assume there are men and women in the labor force and three occupations: preschool, elementary and secondary teachers. Suppose only women can work as elementary and...
-
During the year ended 30 June 20X5, Gem Stone Ltd acquired two areas of interest Site A and Site B. The exploration and evaluation activities at Site A amounted to $64454401. The costs relate to the...
-
What are the strategical elements of logistics in business? Explain with example
-
ABC, Inc., has a beta of 2.03. The risk-free rate is 2.3% and the market risk premium is 6%. What is the required rate of return on ABC's stock? Note: Convert your answer to percentage and round off...
-
In 2023, Anna and Matt earn $420,000 of adjusted gross income and figure $50,000 of total itemized deductions on their Schedule A, comprised entirely of qualified home mortgage interest and gifts to...
-
You are analyzing the stock of Pizza Hub, an online pizza delivery company. Your estimate of the cost of equity is 16 percent. The most recent dividend is $0.20 per share. You expect dividends to...
-
Do organizations such as Apple aspire to cultivate a high inventory turnover ratio to enhance sales momentum while simultaneously mitigating inventory expenses?
-
Read the case study CleanSpritz and answer the question: Would the CleanSpritzs brand do more harm than good and potentially contribute to a public relations debacle?
-
Modify the counter from Exercise 5.44 such that the counter will either increment by 4 or load a new 32-bit value, D, on each clock edge, depending on a control signal Load. When Load = 1, the...
-
Eatern and Sons Ltd accounts for its manufacturing costs using a job order costing system and has provided the following production data during June 2019. Job Z241 was in process as of 1 June with a...
-
Abbott Ltd produces a chemical used to clean showers in a single process in the Production Department. Raw materials in the form of chemicals are added at the beginning of the process, and a litre...
-
The April 2019 transactions of Jackson Productions Ltd, which uses a job order costing system, are shown below. (Ignore GST.) 1. Raw materials purchased, $342 000. 2. Raw materials issued to...
Study smarter with the SolutionInn App