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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 3

(3-a) Return on total assets. (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. Required 3A Required 3B Return on total assets Return On Total Assets 1 Choose Denominator: Choose Numerator: II 1 Return On Total Assets Return on total assets % Current Year: 1 Year Ago: 11 % Required 3A Required 3B > Complete this question by entering your answers in the tabs below. Required 3A Required 3B Based on return on total assets, did Simon's operating efficiency improve or worsen in the Current Year versus 1 Year Ago? Return on total assets