[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 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: Exercise 13-11 (Algo) Analyzing profitability LO P3 Interest expense Income tax expense Total costs and expenses Net income Earnings per share $ 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. Current Year For Year Ended December 31 Sales Cost of goods sold Other operating expenses 1 Year Ago $ 31,400 58,349 77,104 8,412 229,375 $ 404,640 $ 610, 197 579,687 $ 30,510 $ 1.88 2 Years Ago $ 33,717 45,401 48,361 3,635 206,086 $ 337,200 $ 70,436 92,137 163,500 78,567 $ 404,640 $ 337,200 $ 312,989 121,825 11,075 7,223 $ 45,846 73,776 163,500 54,078 1 Year Ago $ 481,522 453,112 $ 28,410 $ 1.75
[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 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: Exercise 13-11 (Algo) Analyzing profitability LO P3 Interest expense Income tax expense Total costs and expenses Net income Earnings per share $ 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. Current Year For Year Ended December 31 Sales Cost of goods sold Other operating expenses 1 Year Ago $ 31,400 58,349 77,104 8,412 229,375 $ 404,640 $ 610, 197 579,687 $ 30,510 $ 1.88 2 Years Ago $ 33,717 45,401 48,361 3,635 206,086 $ 337,200 $ 70,436 92,137 163,500 78,567 $ 404,640 $ 337,200 $ 312,989 121,825 11,075 7,223 $ 45,846 73,776 163,500 54,078 1 Year Ago $ 481,522 453,112 $ 28,410 $ 1.75
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![[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
Exercise 13-11 (Algo) Analyzing profitability LO P3
Interest expense
Income tax expense
Total costs and expenses
Net income
Earnings per share
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
Current Year
1 Year Ago
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
$ 610, 197
$ 31,400
58,349
77,104
8,412
229,375
$ 404,640
579,687
$ 30,510
$1.88
$ 70,436
92,137
163,500
78,567
$ 404,640
2 Years Ago
$ 33,717
45,401
48,361
3,635
206,086
$ 337,200
$ 312,989
121,825
1 Year Ago
11,075
7,223
45,846
73,776
163,500
54,078
$ 337,200
$ 481,522
453,112
$ 28,410
$1.75](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb3995f9f-fece-4aba-9bec-7f0200bb676d%2F0710976b-b545-47bb-acd4-851b6f44bf4f%2F0os9yr_processed.png&w=3840&q=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
Exercise 13-11 (Algo) Analyzing profitability LO P3
Interest expense
Income tax expense
Total costs and expenses
Net income
Earnings per share
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
Current Year
1 Year Ago
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
$ 610, 197
$ 31,400
58,349
77,104
8,412
229,375
$ 404,640
579,687
$ 30,510
$1.88
$ 70,436
92,137
163,500
78,567
$ 404,640
2 Years Ago
$ 33,717
45,401
48,361
3,635
206,086
$ 337,200
$ 312,989
121,825
1 Year Ago
11,075
7,223
45,846
73,776
163,500
54,078
$ 337,200
$ 481,522
453,112
$ 28,410
$1.75
![For both the current year and one year ago, compute the following ratios:
1. Return on equity.
2. Dividend yield.
3a. Price-earnings ratio on December 31.
3b. Assuming Simon's competitor has a price-earnings ratio of 8, which company has higher market expectations for future growth?
Complete this question by entering your answers in the tabs below.
Required 1 Required 2 Required 3A Required 3B
Compute the return on equity for each year.
Return On Equity
Current Year:
1 Year Ago:
Numerator:
1
1
1
Denominator:
=
=
||
Return On Equity
Return on equity
%
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb3995f9f-fece-4aba-9bec-7f0200bb676d%2F0710976b-b545-47bb-acd4-851b6f44bf4f%2F7doh53e_processed.png&w=3840&q=75)
Transcribed Image Text:For both the current year and one year ago, compute the following ratios:
1. Return on equity.
2. Dividend yield.
3a. Price-earnings ratio on December 31.
3b. Assuming Simon's competitor has a price-earnings ratio of 8, which company has higher market expectations for future growth?
Complete this question by entering your answers in the tabs below.
Required 1 Required 2 Required 3A Required 3B
Compute the return on equity for each year.
Return On Equity
Current Year:
1 Year Ago:
Numerator:
1
1
1
Denominator:
=
=
||
Return On Equity
Return on equity
%
%
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