[The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
[The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 2017 2016 2015 Assets Cash. $ 30,400 $ 35,250 $ 37,200 Accounts receivable, net Merchandise inventory. 51,000 87,500 63,500 111,500 80,600 52,000 Prepaid expenses 10,800 9,300 5,300 Plant assets, net 281,000 258,000 234,000 Total assets $521,200 $446,650 $379,500 Liabilities and Equity Accounts payable $130,000 $ 75,500 $50,800 Long-term notes payable secured by mortgages on plant assets 97,000 98,500 82,600 160,000 160,000 160,000 Common stock, $10 par value Retained earnings 134,200 112,650 86,100 Total liabilities and equity $521,200 $446,650 $379,500 The company's income statements for the years ended December 31, 2017 and 2016, follow. 2017 2016 For Year Ended December 31 Sales. $725,000 $ 550,000 Cost of goods sold $449,500 $352,000 126,500 Other operating expenses 210,250 Interest expense 11,800 9,300 13,400 8,750 Income taxes 680,850 500, 650 Total costs and expenses Net income $ 44,150 $ 49,350 $ 2.76 Earnings per share $ 3.08 Evaluate the company's efficiency and profitability by computing the following for 2017 and 2016. Income taxes 9,300 Total costs and expenses: 680,850 500,650 Net income $ 44,150 $ 49,350 Earnings per share $ 2.76 $ 3.08 Evaluate the company's efficiency and profitability by computing the following for 2017 and 2016. Exercise 17-10 Part 1 (1) Profit margin ratio. Profit Margin Ratio /Choose Denominator: Profit Margin Ratio 1 Profit margin ratio 7 % % 2017 2016 8,750 Choose Numerator: 11 = = Exercise 17-10 Part 2 (2) Total asset turnover. Choose Numerator: 2017 2016 Total Asset Turnover / Choose Denominator: 1 1 = Total Asset Turnover = Total asset turnover = times times 11 11 11 Exercise 17-10 Part 3 (3) Return on total assets. Choose Numerator: 2017 2016 Return On Total Assets / Choose Denominator: 11 = 11 Return On Total Assets Return on total assets % [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 2017 2016 2015 Assets Cash. $ 30,400 $ 35,250 $ 37,200 Accounts receivable, net Merchandise inventory. 51,000 87,500 63,500 111,500 80,600 52,000 Prepaid expenses 10,800 9,300 5,300 Plant assets, net 281,000 258,000 234,000 Total assets $521,200 $446,650 $379,500 Liabilities and Equity Accounts payable $130,000 $ 75,500 $50,800 Long-term notes payable secured by mortgages on plant assets 97,000 98,500 82,600 160,000 160,000 160,000 Common stock, $10 par value Retained earnings 134,200 112,650 86,100 Total liabilities and equity $521,200 $446,650 $379,500 The company's income statements for the years ended December 31, 2017 and 2016, follow. 2017 2016 For Year Ended December 31 Sales. $725,000 $ 550,000 Cost of goods sold $449,500 $352,000 126,500 Other operating expenses 210,250 Interest expense 11,800 9,300 13,400 8,750 Income taxes 680,850 500, 650 Total costs and expenses Net income $ 44,150 $ 49,350 $ 2.76 Earnings per share $ 3.08 Evaluate the company's efficiency and profitability by computing the following for 2017 and 2016. Income taxes 9,300 Total costs and expenses: 680,850 500,650 Net income $ 44,150 $ 49,350 Earnings per share $ 2.76 $ 3.08 Evaluate the company's efficiency and profitability by computing the following for 2017 and 2016. Exercise 17-10 Part 1 (1) Profit margin ratio. Profit Margin Ratio /Choose Denominator: Profit Margin Ratio 1 Profit margin ratio 7 % % 2017 2016 8,750 Choose Numerator: 11 = = Exercise 17-10 Part 2 (2) Total asset turnover. Choose Numerator: 2017 2016 Total Asset Turnover / Choose Denominator: 1 1 = Total Asset Turnover = Total asset turnover = times times 11 11 11 Exercise 17-10 Part 3 (3) Return on total assets. Choose Numerator: 2017 2016 Return On Total Assets / Choose Denominator: 11 = 11 Return On Total Assets Return on total assets %
Expert Answer:
Answer rating: 100% (QA)
Profit Margin Ratio Profit Margin Ratio Choose Numerator Choose Denomin... View the full answer
Related Book For
Introduction to Finance Markets, Investments and Financial Management
ISBN: 978-1119398288
16th edition
Authors: Ronald W. Melicher, Edgar A. Norton
Posted Date:
Students also viewed these accounting questions
-
10. Write the equation for a function that has a graph with the given characteristics. a) The shape of y-x', but shifted to the right 8 units, and up 4 units. [2] b) The shape of y-x, but shifted...
-
The following information applies to the questions displayed below Dower Corporation prepares its financial statements according to IFRS On March 31, 2021, the company purchased equipment for...
-
The following information applies to the questions displayed below Juan Diego began the year with a tax basis in his partnership interest of $50,000 During the year, he was allocated $20,000 of...
-
Case 2: First Year on the Job Joe finally received that job offer in the mail. He worked part-time for First Cirrus Bank during the spring semester and the work experience had paid off. Beginning on...
-
Aussie Travel uses the contribution margin income statement internally. Aussies second quarter results are as follows: Aussies relevant range is sales of between $ 115,000 and $ 680,000. Requirements...
-
If your monthly salary is $5,167 and 28% is withheld for taxes and Social Security, how much money will be withheld from your check on payday? AB&C Monthly Married 9:36 PM Pay Check Calculator...
-
How is the frequency of the solution of Duffing's equation affected by the nature of the spring?
-
Radomir Company buys merchandise on account from Lemke Company. The selling price of the goods is $780, and the cost of the goods is $470. Both companies use perpetual inventory systems. Journalize...
-
Land improvements As of December 31 2022 : Beginning balance - P5,000,000 Estimated useful life - 10 years Depreciation method - 150% declining balance method Accumulated Depreciation - P2,781,473 a....
-
At December 31, Year 1, the accounting records of Braun Corporation contain the following items: Accounts Payable $ 18,000 Accounts Receivable $ 44,000 Land $ 244,000 Cash ? Capital Stock ? Equipment...
-
A double-tube detector installed in a one-lane road detected 4 vehicles within 1 minute (-0 to 60 seconds): Vehicle ID Arrival time (sec) Speed (mph) 45 5.50 19.44 48 37.02 52 58.15 35 2 3 4 What is...
-
Outline the political conflict in the Harlan Country USA film. Who are the key players on each side of the conflict? What is each side fighting for?
-
How do microservices architectures leverage IPC to facilitate communication between distinct services, and what are the benefits and challenges associated with this approach ?
-
Highland\'s Company uses the weighted - average method in its process costing system. It processes wood pulp for various manufacturers of paper products. Data relating to tons of pulp processed...
-
Explain the impact of IPC on system security. What potential vulnerabilities are introduced by IPC mechanisms like pipes and sockets, and how can they be mitigated?
-
In Year 1 , Lee Incorporated billed its customers $ 5 7 , 7 0 0 for services performed. The company collected $ 4 1 , 4 0 0 of the amount billed. Lee incurred $ 3 7 , 6 0 0 of other operating...
-
Which is NOT correct about holding a tenant's security deposit? A) The landlord may hold the deposit in a separate non-interest-bearing account. B) The landlord's broker may commingle the deposits...
-
Representative data read from a plot that appeared in the paper Effect of Cattle Treading on Erosion from Hill Pasture: Modeling Concepts and Analysis of Rainfall Simulator Data (Australian Journal...
-
Youve collected data on the betas of various mutual funds. Each fund and its beta is listed below: Mutual Fund Beta Weak Fund....................0.23 Fido Fund......................0.77...
-
What information sources are used to develop estimates for these project components: a. initial outlays? b. operating life? c. salvage value ?
-
What is a round lot of common stock?
-
A reversible heat engine working between two thermal reservoirs at \(875 \mathrm{~K}\) and \(315 \mathrm{~K}\) drives a reversible refrigerator which operates between the same \(315 \mathrm{~K}\)...
-
2 kg of water at \(80^{\circ} \mathrm{C}\) is mixed adiabatically with \(3 \mathrm{~kg}\) of water at \(30^{\circ} \mathrm{C}\) in a constant pressure process of 1 atmosphere. Find the increase in...
-
A heat engine operating between two reservoirs at \(1000 \mathrm{~K}\) and \(300 \mathrm{~K}\) is used to drive a heat pump which extracts heat from the reservoir at \(300 \mathrm{~K}\), at a rate...
Study smarter with the SolutionInn App