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. (2) Roturn on total accots

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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[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
Current Year
$ 27,970
80, 264
100,917
9,097
251,134
$ 469,382
Income tax expense
Total costs and expenses
Net income
Liabilities and Equity
Accounts payable
Long-term notes payable
Common stock, $10 par value
Retained earnings
Total liabilities and equity
For both the current year and one year ago, compute the following ratios:
$ 116,876
90,891
163,500
98,115
$ 469,382
$ 372,220
189,161
10,373
7,933
The company's income statements for the current year and 1 year ago, follow.
For Year Ended December 31
Sales
Cost of goods sold
Other operating expenses
Interest expense
Current Year
1 Year Ago
$ 31,400
58, 349
77,104
8,412
229,375
$ 404,640
Exercise 13-10 (Algo) Analyzing efficiency and profitability LO P3
$ 610,197
$ 70,436
92,137
163,500
78,567
$ 404, 640
579,687
$ 30,510
$ 1.88
2 Years Ago
$ 33,717
45,401
48,361
3,635
206,086
$ 337,200
$ 312,989
121,825
11,075
7,223
Earnings per share
For both the Current Year and 1 Year Ago, compute the following ratios:
$ 45,846
73,776
163,500
54,078
$ 337,200
1 Year Ago
$ 481,522
453,112
$ 28,410
$ 1.75
Transcribed Image Text:[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 Current Year $ 27,970 80, 264 100,917 9,097 251,134 $ 469,382 Income tax expense Total costs and expenses Net income Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity For both the current year and one year ago, compute the following ratios: $ 116,876 90,891 163,500 98,115 $ 469,382 $ 372,220 189,161 10,373 7,933 The company's income statements for the current year and 1 year ago, follow. For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Current Year 1 Year Ago $ 31,400 58, 349 77,104 8,412 229,375 $ 404,640 Exercise 13-10 (Algo) Analyzing efficiency and profitability LO P3 $ 610,197 $ 70,436 92,137 163,500 78,567 $ 404, 640 579,687 $ 30,510 $ 1.88 2 Years Ago $ 33,717 45,401 48,361 3,635 206,086 $ 337,200 $ 312,989 121,825 11,075 7,223 Earnings per share For both the Current Year and 1 Year Ago, compute the following ratios: $ 45,846 73,776 163,500 54,078 $ 337,200 1 Year Ago $ 481,522 453,112 $ 28,410 $ 1.75
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.
(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 1A Required 1B Required 2 Required 3A Required 3B
Compute profit margin ratio for the current year and one year ago.
Profit Margin Ratio
I
7
7
Current Year:
1 Year Ago:
Numerator:
Denominator:
= Profit Margin Ratio
Profit margin ratio
=
=
=
%
Transcribed Image Text: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. (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 1A Required 1B Required 2 Required 3A Required 3B Compute profit margin ratio for the current year and one year ago. Profit Margin Ratio I 7 7 Current Year: 1 Year Ago: Numerator: Denominator: = Profit Margin Ratio Profit margin ratio = = = %
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