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 $ 42,304 $ 35,467 102,794 127,925 11,888 335,329 74,031 95,871 11,327 305, 263 $ 613,403 $ 528,796 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: $ 486,429 247,201 $ 149,683 117,626 162,500 183,594 $ 88,473 125,272 162,500 152,551 $ 613,403 $ 528,796 13,556 10,367 The company's income statements for the Current Year and 1 Year Ago, follow. Current Year 1 Year Ago For Year Ended December 31 Sales Cost of goods sold Other operating expenses $ 797,424 Interest expense Income tax expense Total costs and expenses Net income Earnings per share Additional information about the company follows. Common stock market price, December 31, Current Year Common stock market price, December 31, 1 Year Ago Annual cash dividends per share in Current Year 757,553 $ 39,871 $2.45 2 Years Ago $ 409,024 159,205 14,473 9,439 $ 32.00 30.00 0.28 $ 43,194 57,592 63, 194 4,751 267,569 $ 436,300 $ 57,016 94,494 163,500 121,290 $ 436,300 $ 629,267 592, 141 $ 37, 126 $2.28

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
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
Interest expense
Income tax expense
Total costs and expenses
Net income
Current Year
$ 35,467
102,794
127,925
11,888
335,329
$ 613,403
For both the current year and one year ago, compute the following ratios:
ه له مه له :. .: له
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
$ 149,683
117,626
162,500
183,594
$ 613,403
$ 486,429
247,201
Current Year
13,556
10,367
Vanu
$ 797,424
Earnings per share
Additional information about the company follows.
Common stock market price, December 31, Current Year
Common stock market price, December 31, 1 Year Ago
Annual cash dividends per share in Current Year
Ammin1
1 Year Ago 2 Years Ago
$ 42,304
74,031
95,871
11,327
305,263
$ 528,796
757, 553
$ 39,871
$ 2.45
$ 88,473
125,272
162,500
152, 551
$ 528,796
$ 409,024
159, 205
14,473
9,439
$ 43,194
57,592
$ 32.00
30.00
0.28
11
63, 194
4,751
267,569
$ 436,300
1 Year Ago
$ 57,016
94,494
163,500
121,290
$ 436,300
$ 629,267
592,141
$ 37, 126
$ 2.28
Transcribed Image Text: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 Interest expense Income tax expense Total costs and expenses Net income Current Year $ 35,467 102,794 127,925 11,888 335,329 $ 613,403 For both the current year and one year ago, compute the following ratios: ه له مه له :. .: له 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 $ 149,683 117,626 162,500 183,594 $ 613,403 $ 486,429 247,201 Current Year 13,556 10,367 Vanu $ 797,424 Earnings per share Additional information about the company follows. Common stock market price, December 31, Current Year Common stock market price, December 31, 1 Year Ago Annual cash dividends per share in Current Year Ammin1 1 Year Ago 2 Years Ago $ 42,304 74,031 95,871 11,327 305,263 $ 528,796 757, 553 $ 39,871 $ 2.45 $ 88,473 125,272 162,500 152, 551 $ 528,796 $ 409,024 159, 205 14,473 9,439 $ 43,194 57,592 $ 32.00 30.00 0.28 11 63, 194 4,751 267,569 $ 436,300 1 Year Ago $ 57,016 94,494 163,500 121,290 $ 436,300 $ 629,267 592,141 $ 37, 126 $ 2.28
Additional information about the company follows.
Common stock market price, December 31, Current Year
Common stock market price, December 31, 1 Year Ago
Annual cash dividends per share in Current Year
Annual cash dividends per share 1 Year Ago
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 6, 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
Current Year:
1 Year Ago
Required 3B
Compute the dividend yield for each year. (Round your answers to 2 decimal places.)
Numerator:
$32.00
30.00
0.28
0.14
Dividend Yield
1
1
1
Required 1
Denominator:
Required 3A
>
=
=
=
=
Dividend Yield
Dividend yield
0 %
0%
Transcribed Image Text:Additional information about the company follows. Common stock market price, December 31, Current Year Common stock market price, December 31, 1 Year Ago Annual cash dividends per share in Current Year Annual cash dividends per share 1 Year Ago 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 6, 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 Current Year: 1 Year Ago Required 3B Compute the dividend yield for each year. (Round your answers to 2 decimal places.) Numerator: $32.00 30.00 0.28 0.14 Dividend Yield 1 1 1 Required 1 Denominator: Required 3A > = = = = Dividend Yield Dividend yield 0 % 0%
Expert Solution
steps

Step by step

Solved in 2 steps with 5 images

Blurred answer
Knowledge Booster
Financial Reporting in Hyperinflationary Economies
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education