[The following information applies to the questions displayed below.]Simon Company's year-end balance sheets follow.At December 31AssetsCashAccounts receivable, netMerchandise inventoryPrepaid expensesPlant assets, netTotal assetsCurrent Year$ 27,97080, 264100,9179,097251,134$ 469,382Exercise 13-11 (Algo) Analyzing profitability LO P3Interest expenseIncome tax expenseTotal costs and expensesNet incomeEarnings per shareLiabilities and EquityAccounts payableLong-term notes payableCommon stock, $10 par valueRetained earningsTotal liabilities and equityFor both the current year and one year ago, compute the following ratios:$ 116,87690,891163,50098,115$ 469,382$ 372,220189,16110,3737,933Current Year1 Year AgoThe company's income statements for the Current Year and 1 Year Ago, follow.For Year Ended December 31SalesCost of goods soldOther operating expenses$ 610, 197$ 31,40058,34977,1048,412229,375$ 404,640579,687$ 30,510$1.88$ 70,43692,137163,50078,567$ 404,6402 Years Ago$ 33,71745,40148,3613,635206,086$ 337,200$ 312,989121,8251 Year Ago11,0757,22345,84673,776163,50054,078$ 337,200$ 481,522453,112$ 28,410$1.75 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 8, 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 Required 3BCompute the return on equity for each year.Return On EquityCurrent Year:1 Year Ago:Numerator:111Denominator:==||Return On EquityReturn on equity%%

Ratio Analysis -The ratio is the technique used by the prospective investor or an individual or…

[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 $ 27,970 80, 264 100,917 9,097 251,134 $ 469,382 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: Exercise 13-11 (Algo) Analyzing profitability LO P3 Interest expense Income tax expense Total costs and expenses Net income Earnings per share $ 116,876 90,891 163,500 98,115 $ 469,382 $ 372,220 189, 161 10,373 7,933 The company's income statements for the Current Year and 1 Year Ago, follow. Current Year For Year Ended December 31 Sales Cost of goods sold Other operating expenses 1 Year Ago $ 31,400 58,349 77,104 8,412 229,375 $ 404,640 $ 610, 197 579,687 $ 30,510 $ 1.88 2 Years Ago $ 33,717 45,401 48,361 3,635 206,086 $ 337,200 $ 70,436 92,137 163,500 78,567 $ 404,640 $ 337,200 $ 312,989 121,825 11,075 7,223 $ 45,846 73,776 163,500 54,078 1 Year Ago $ 481,522 453,112 $ 28,410 $ 1.75

[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 $ 27,970 80, 264 100,917 9,097 251,134 $ 469,382 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: Exercise 13-11 (Algo) Analyzing profitability LO P3 Interest expense Income tax expense Total costs and expenses Net income Earnings per share $ 116,876 90,891 163,500 98,115 $ 469,382 $ 372,220 189, 161 10,373 7,933 The company's income statements for the Current Year and 1 Year Ago, follow. Current Year For Year Ended December 31 Sales Cost of goods sold Other operating expenses 1 Year Ago $ 31,400 58,349 77,104 8,412 229,375 $ 404,640 $ 610, 197 579,687 $ 30,510 $ 1.88 2 Years Ago $ 33,717 45,401 48,361 3,635 206,086 $ 337,200 $ 70,436 92,137 163,500 78,567 $ 404,640 $ 337,200 $ 312,989 121,825 11,075 7,223 $ 45,846 73,776 163,500 54,078 1 Year Ago $ 481,522 453,112 $ 28,410 $ 1.75

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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