(The following information applies to the questions displayed belov.] Simon Company's year-end balance sheets follow. At December 31 1 Yr Ago 2 Yrs Ago Current Yr Assets Cash 2$ 31,320 $ 32,958 62.100 84,000 $ 26,794 Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net 89,900 111.000 50,500 53,000 3,662 199,580 $ 399,487 $ 339.700 8.629 8.221 227.082 213.846 Total assets $ 463,405 Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings $ 113,080 66.163 $ 43.944 90,044 73,572 162,500 85.378 162,500 162,500 80,780 $ 399,487 $ 339,700 102.447 59.684 Total liabilities and equity $ 463,405 The company's income statements for the Current Year and 1 Year Ago, follow. Assume that all sales are on credit For Year Ended December 31 Sales 1 Yr Ago Current Yr $ 602.427 $ 475,390 Cost of goods sold Other operating expenses Interest expense $ 367,480 186,752 10,241 $ 309.004 120,274 10,934 Income tax expense Total costs and expenses 7,832 7,131 572,305 24 447,343 Net income 30122 2$ 28,047 Earnings per share 24 1,85 24 1.73 (4-a) Compute days' sales in inventory. (4-b) For each ratio, determine if it improved or worsened in the current year.
(The following information applies to the questions displayed belov.] Simon Company's year-end balance sheets follow. At December 31 1 Yr Ago 2 Yrs Ago Current Yr Assets Cash 2$ 31,320 $ 32,958 62.100 84,000 $ 26,794 Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net 89,900 111.000 50,500 53,000 3,662 199,580 $ 399,487 $ 339.700 8.629 8.221 227.082 213.846 Total assets $ 463,405 Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings $ 113,080 66.163 $ 43.944 90,044 73,572 162,500 85.378 162,500 162,500 80,780 $ 399,487 $ 339,700 102.447 59.684 Total liabilities and equity $ 463,405 The company's income statements for the Current Year and 1 Year Ago, follow. Assume that all sales are on credit For Year Ended December 31 Sales 1 Yr Ago Current Yr $ 602.427 $ 475,390 Cost of goods sold Other operating expenses Interest expense $ 367,480 186,752 10,241 $ 309.004 120,274 10,934 Income tax expense Total costs and expenses 7,832 7,131 572,305 24 447,343 Net income 30122 2$ 28,047 Earnings per share 24 1,85 24 1.73 (4-a) Compute days' sales in inventory. (4-b) For each ratio, determine if it improved or worsened in the current year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:**Simon Company's Year-End Financial Statements**
Below are the balance sheets and income statements for Simon Company. This data is relevant for analyzing the company's financial performance over the past two years.
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**Balance Sheets**
*At December 31*
**Assets**
- **Cash:**
- Current Year: $26,794
- 1 Year Ago: $31,320
- 2 Years Ago: $32,958
- **Accounts Receivable, Net:**
- Current Year: $89,900
- 1 Year Ago: $62,100
- **Merchandise Inventory:**
- Current Year: $111,000
- 1 Year Ago: $84,000
- **Prepaid Expenses:**
- Current Year: $8,629
- 1 Year Ago: $8,221
- **Plant Assets, Net:**
- Current Year: $81,629
- 1 Year Ago: $81,221
- **Total Assets:**
- Current Year: $227,082
- 1 Year Ago: $213,846
**Liabilities and Equity**
- **Accounts Payable:**
- Current Year: $113,080
- 1 Year Ago: $66,163
- **Long-term Notes Payable Secured by Mortgages on Plant Assets:**
- Current Year: $85,378
- 1 Year Ago: $90,044
- **Common Stock, $10 Par Value:**
- Current Year: $162,500
- 1 Year Ago: $162,500
- **Retained Earnings:**
- Current Year: $102,447
- 1 Year Ago: $80,780
- **Total Liabilities and Equity:**
- Current Year: $463,405
- 1 Year Ago: $399,487
---
**Income Statements**
*For Year Ended December 31*
- **Sales:**
- Current Year: $367,480
- 1 Year Ago: $602,427
- **Cost of Goods Sold:**
- Current Year: $309,004
- **Other Operating Expenses:**
- Current Year: $186,752
- 1 Year Ago: $120,274
- **Interest Expense:**
-
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