Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net $ 24,930 71,524 89,927 8,109 232,313 $426,803 $29,435 $ 30,652 49,965 69,429 7,881 211,224 38,886 42,258 3,307 185,497 Total assets $ 367,934 $ 300,600 Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings $105,211 $ 62,803 $ 40,473 81,844 162,500 77,248 82,932 162,500 59,699 $ 367,934 $ 300,600 68,426 162,500 29,201 Total liabilities and equity $426,803 The company's income statements for the Current Year and 1 Year Ago, follow. 1 Yr Ago $ 437,841 For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Current Yr $554,844 $338,455 172,002 9,432 7,213 $284,597 110,774 10,070 6,568 527,102 $ 27,742 412,009 Net income $ 25,832

Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net $ 24,930 71,524 89,927 8,109 232,313 $426,803 $29,435 $ 30,652 49,965 69,429 7,881 211,224 38,886 42,258 3,307 185,497 Total assets $ 367,934 $ 300,600 Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings $105,211 $ 62,803 $ 40,473 81,844 162,500 77,248 82,932 162,500 59,699 $ 367,934 $ 300,600 68,426 162,500 29,201 Total liabilities and equity $426,803 The company's income statements for the Current Year and 1 Year Ago, follow. 1 Yr Ago $ 437,841 For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Current Yr $554,844 $338,455 172,002 9,432 7,213 $284,597 110,774 10,070 6,568 527,102 $ 27,742 412,009 Net income $ 25,832

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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