SalesCost of goods soldother operating expensesInterest expenseIncome tax expenseTotal costs and expenses$755,000$ 620,000$445,450234,05011,3009,550$390,600148,80012,7008,925of 3700,350561,025$ 58,975Net income$ 54,650Earnings per share243.40243.67For both the Current Year and 1 Year Ago, compute the following ratios:okExercise 13-10 Part 2at(2) Total asset turnover.ncesTotal Asset TurnoverChoose Numerator:Choose Denominator:Total Asset Turnover%3DTotal asset turnover%DtimesCurrent Year:times%3D1 Year Ago:< Prev6 7of 8Next >......... Simon Company's year-end balance sheets follow.At December 31Current Yr1 Yr Ago 2 Yrs AgoAssets$ 31,60088,000112,50010,650281,000$523,750$ 36,250 $ 38,40062,00083,8009,350249,500$440,900 $ 379,900CashAccounts receivable, netMerchandise inventoryPrepaid expensesPlant assets, net49,50052,5004,500235,000Total assetsLiabilities and EquityAccounts payableLong-term notes payable secured bymortgages on plant assetsCommon stock, $10 par valueRetained earnings$128,400$ 74,750 $ 50,80097,000160,500137,85098,250160,500107,40081,600160,50087,000Total liabilities and equity$523,750$440,900 $ 379,900cesThe company's income statements for the Current Year and 1 Year Ago, follow.1 Yr AgoFor Year Ended December 31SalesCurrent Yr$755,000$ 620,000Cost of goods soldother operating expensesInterest expense$445,450234,05011,3009,550$390,600148,80012,7008,925Income tax expenseTotal costs and expenses700,350561,025Net income$ 54,650$ 58,975< Prev6 7of 8Next >101

The asset turnover ratio relates the worth of a company's sales or revenues to the value of its…

Sales $755,000 $ 620,000 Cost of goods sold other operating expenses Interest expense $445,450 234,050 11,300 9,550 $390,600 148,800 12,700 8,925 Income tax expense Total costs and expenses 700,350 $ 54,650 561,025 Net income $ 58,975 Earnings per share 3.40 2$ 3.67 For both the Current Year and 1 Year Ago, compute the following ratios: rcise 13-10 Part 2 otal a ccot turnovar

Sales $755,000 $ 620,000 Cost of goods sold other operating expenses Interest expense $445,450 234,050 11,300 9,550 $390,600 148,800 12,700 8,925 Income tax expense Total costs and expenses 700,350 $ 54,650 561,025 Net income $ 58,975 Earnings per share 3.40 2$ 3.67 For both the Current Year and 1 Year Ago, compute the following ratios: rcise 13-10 Part 2 otal a ccot turnovar

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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