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Required information [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 1 Year Ago $ 29,602 $ 25,069 73,399 51,281 68,455 91,353 8,238 235,510 7,771 216,657 $ 433,569 $ 373,766 Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity The company's income statements for the current year and one year ago, follow. For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income. Earnings per share $ 107,959 $ 63,798 85,107 80,696 162,500 82,414 162,500 62,361 $ 433,569 $ 373,766 Current Year $ 343,820 174,728 9,582 7,327 $ 563,640 2 Years Ago $ 29,638 40,715 42,082 3,393 186,572 $ 302,400 535,457 $ 28,183 $ 1.73 $ 39,118 68,167 162,500 32,615 $ 302,400 1 Year Ago $ 289,108 112,530 10,230 6,672 $ 444,782 418,540 $ 26,242 $ 1.61

Required information [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 1 Year Ago $ 29,602 $ 25,069 73,399 51,281 68,455 91,353 8,238 235,510 7,771 216,657 $ 433,569 $ 373,766 Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity The company's income statements for the current year and one year ago, follow. For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income. Earnings per share $ 107,959 $ 63,798 85,107 80,696 162,500 82,414 162,500 62,361 $ 433,569 $ 373,766 Current Year $ 343,820 174,728 9,582 7,327 $ 563,640 2 Years Ago $ 29,638 40,715 42,082 3,393 186,572 $ 302,400 535,457 $ 28,183 $ 1.73 $ 39,118 68,167 162,500 32,615 $ 302,400 1 Year Ago $ 289,108 112,530 10,230 6,672 $ 444,782 418,540 $ 26,242 $ 1.61

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required information [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 Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity Current Year. 1 Year Ago 2 Years Ago $ 25,069 73,399 91,353 8,238 235,510 $ 433,569 Earnings per share $ 107,959 80,696 162,500 82,414 $ 433,569 Current Year $ 343,820 174,728 $ 29,602 51,281 68,455 7,771 216,657 $ 373,766 The company's income statements for the current year and one year ago, follow. For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income 9,582 7,327 $63,798 85,107 162,500 62,361 $ 373,766 $ 563,640 $ 29,638 40,715 42,082 3,393 186,572 $ 302,400 535,457 $ 28,183 $ 1.73 $ 39,118 68,167 162,500 32,615 $ 302,400 1 Year Ago $ 289,108 112,530 10,230 6,672 $444,782 418,540 $ 26,242 $ 1.61
Transcribed Image Text:Required information [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 Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity Current Year. 1 Year Ago 2 Years Ago $ 25,069 73,399 91,353 8,238 235,510 $ 433,569 Earnings per share $ 107,959 80,696 162,500 82,414 $ 433,569 Current Year $ 343,820 174,728 $ 29,602 51,281 68,455 7,771 216,657 $ 373,766 The company's income statements for the current year and one year ago, follow. For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income 9,582 7,327 $63,798 85,107 162,500 62,361 $ 373,766 $ 563,640 $ 29,638 40,715 42,082 3,393 186,572 $ 302,400 535,457 $ 28,183 $ 1.73 $ 39,118 68,167 162,500 32,615 $ 302,400 1 Year Ago $ 289,108 112,530 10,230 6,672 $444,782 418,540 $ 26,242 $ 1.61
Required 1A Required 1B Compute profit margin ratio for the current year and one year ago. Profit Margin Ratio I 1 Current Year: 1 Year Ago: Current Year: 1 Year Ago: Net income $ $ Numerator: (2) Compute total asset turnover for the current year and one year ago. Current Year: 1 Year Ago: Numerator: Net sales $ S Required 3A Required 3B Denominator: Net sales 33,137/ $ 30,855/ $ Numerator: Net income $ $ Denominator: Average total assets. 662,722 $ 522,970/ $ Compute return on total assets for the current year and one year ago. ✓1 Answer is complete but not entirely correct. Total Asset Turnover Return On Total Assets = 662,722 X= 522,970 X = ✓= 509,786 = 439,471 X= = Denominator: I I Average total assets 33,137 / S 30,855 / $ Total Asset Turnover Total asset turnover 1.3 1.2 = 474,629 = 406,586 Profit Margin Ratio Profit margin ratio = times times 5.0 5.9 % % Return On Total Assets Return on total assets % 7.0 7.6 %
Transcribed Image Text:Required 1A Required 1B Compute profit margin ratio for the current year and one year ago. Profit Margin Ratio I 1 Current Year: 1 Year Ago: Current Year: 1 Year Ago: Net income $ $ Numerator: (2) Compute total asset turnover for the current year and one year ago. Current Year: 1 Year Ago: Numerator: Net sales $ S Required 3A Required 3B Denominator: Net sales 33,137/ $ 30,855/ $ Numerator: Net income $ $ Denominator: Average total assets. 662,722 $ 522,970/ $ Compute return on total assets for the current year and one year ago. ✓1 Answer is complete but not entirely correct. Total Asset Turnover Return On Total Assets = 662,722 X= 522,970 X = ✓= 509,786 = 439,471 X= = Denominator: I I Average total assets 33,137 / S 30,855 / $ Total Asset Turnover Total asset turnover 1.3 1.2 = 474,629 = 406,586 Profit Margin Ratio Profit margin ratio = times times 5.0 5.9 % % Return On Total Assets Return on total assets % 7.0 7.6 %
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