The company?s income statements for the years ended December 31, 2017 and 2016, follow.

Evaluate the company?s efficiency and profitability by computing the following for 2017 and 2016.

Total asset turnover.

Required information

The following information applies to the questions displayed below.

Simon Company?s year-end balance sheets follow.

The company?s income statements for the years ended December 31, 2017 and 2016 follow.

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For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income taxes Total costs and expenses Net income Earnings per share 2017 $454,450 223,500 11,400 9,550 $745,000 698,900 $ 46,100 $ 2.84 $344,500 132,500 13,000 8,800 2016 $530,000 $ 498,800 31,200 1.92 2017 2016 Choose Numerator: Total Asset Turnover Choose Denominator: = = || Total Asset Turnover Total asset turnover times times 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 secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity 2016 $ 30,400 $ 36,250 $ 89,500 63,500 2017 2015 37,400 49,000 54,500 111,000 81,800 10,800 9,500 282,000 250,500 $523,700 $441,550 $378,900 4,000 234,000 $128,400 $ 75,500 $ 51,000 97,000 99,750 82,800 162,500 162,500 162,500 135,800 103,800 82,600 $523,700 $441,550 $ 378,900 For Year Ended December 31 Sales 2017 $745,000 2016 $ 530,000 For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income taxes Total costs and expenses Net income Earnings per share 2017 $454,450 223,500 11,400 9,550 $745,000 698,900 $ 46,100 $ 2.84 $344,500 132,500 13,000 8,800 2016 $530,000 $ 498,800 31,200 1.92 2017 2016 Choose Numerator: Total Asset Turnover Choose Denominator: = = || Total Asset Turnover Total asset turnover times times 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 secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity 2016 $ 30,400 $ 36,250 $ 89,500 63,500 2017 2015 37,400 49,000 54,500 111,000 81,800 10,800 9,500 282,000 250,500 $523,700 $441,550 $378,900 4,000 234,000 $128,400 $ 75,500 $ 51,000 97,000 99,750 82,800 162,500 162,500 162,500 135,800 103,800 82,600 $523,700 $441,550 $ 378,900 For Year Ended December 31 Sales 2017 $745,000 2016 $ 530,000

Answer rating: 100% (QA)

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