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[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 Current Yr 1 Yr Ago 2 Yrs Ago $ 26,794 89,900 111,000 31,320 $ 62.100 32,958 50,500 84,000 53.000 8,629 8,221 3,662 199,580 227,082 213,846 Total assets $ 463,405 $ 399,487 $ 339,700 Llabillties and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings $ 113,080 2$ 66,163 $ 43,944 85,378 90,044 162,500 80,780 73,572 162,500 102,447 162,500 59,684 Total liabilities and equity $ 463,405 $ 399,487 $ 339,700 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 Current Yr 1 Yr Ago $ 602,427 $ 475,390 Cost of goods sold Other operating expenses Interest expense $ 367,480 $ 309.004 186.752 10,241 120,274 10,934 Income tax expense Total costs and expenses 7,832 7,131 572,305 447,343 Net income %24 30,122 24 28.047 Earnings per share %24 1.85 %24 1.73 (3-a) Compute inventory turnover. (3-b) For each ratio, determine if it improved or worsened in the current year. Complete this question by entering your answers in the tabs below. Required 3A Required 3B Compute inventory turnover. Inventory Turnover IChoose Denominator: Choose Numerator: Inventory Turnover %3D Inventory tumover %3D Current Yr: %3D times 1 Yr Ago: %3D times ( Required 3A Required 38 >

[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 Current Yr 1 Yr Ago 2 Yrs Ago $ 26,794 89,900 111,000 31,320 $ 62.100 32,958 50,500 84,000 53.000 8,629 8,221 3,662 199,580 227,082 213,846 Total assets $ 463,405 $ 399,487 $ 339,700 Llabillties and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings $ 113,080 2$ 66,163 $ 43,944 85,378 90,044 162,500 80,780 73,572 162,500 102,447 162,500 59,684 Total liabilities and equity $ 463,405 $ 399,487 $ 339,700 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 Current Yr 1 Yr Ago $ 602,427 $ 475,390 Cost of goods sold Other operating expenses Interest expense $ 367,480 $ 309.004 186.752 10,241 120,274 10,934 Income tax expense Total costs and expenses 7,832 7,131 572,305 447,343 Net income %24 30,122 24 28.047 Earnings per share %24 1.85 %24 1.73 (3-a) Compute inventory turnover. (3-b) For each ratio, determine if it improved or worsened in the current year. Complete this question by entering your answers in the tabs below. Required 3A Required 3B Compute inventory turnover. Inventory Turnover IChoose Denominator: Choose Numerator: Inventory Turnover %3D Inventory tumover %3D Current Yr: %3D times 1 Yr Ago: %3D times ( Required 3A Required 38 >

FINANCIAL ACCOUNTING
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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[The following information applies to the questions displayed below. Simon Company's year-end balance sheets follow. At December 31 Assets 1 Yr Ago Current Yr 2 Yrs Ago Cash $ 26,794 $ 31,320 $ 62.100 32,958 Accounts receivable, net Merchandise inventory 89,900 50,500 111,000 8,629 84,000 53,000 Prepaid expenses Plant assets, net 3,662 199,580 8,221 227,082 213.846 Total assets $ 463,405 $ 399,487 $ 339,700 Liabilitles 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 85,378 90,044 162,500 80,780 73,572 162,500 102,447 162,500 59,684 Total liabilities and equity $ 463,405 $ 399,487 $ 339,700 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 Current Yr 1 Yr Ago Sales $ 602,427 $ 475,390 Cost of goods sold Other operating expenses Interest expense Income tax expense $ 367,480 $ 309,004 186.752 120.274 10,241 10,934 7,832 7,131 Total costs and expenses 572.305 447,343 Net income $ 30,122 28.047 2$ Earnings per share %24 1.85 $ 1.73 (3-a) Compute inventory turnover. (3-b) For each ratio, determine if it improved or worsened in the current year. Complete this question by entering your answers in the tabs below. Required 3A Required 3B Compute inventory turnover. Inventory Turnover IChoose Denominator: Choose Numerator: Inventory Turnover %3D %3D Inventory tumover Current Yr: times %3D 1 Yr Ago: times %3D < Required 3A Required 38 >
Transcribed Image Text:[The following information applies to the questions displayed below. Simon Company's year-end balance sheets follow. At December 31 Assets 1 Yr Ago Current Yr 2 Yrs Ago Cash $ 26,794 $ 31,320 $ 62.100 32,958 Accounts receivable, net Merchandise inventory 89,900 50,500 111,000 8,629 84,000 53,000 Prepaid expenses Plant assets, net 3,662 199,580 8,221 227,082 213.846 Total assets $ 463,405 $ 399,487 $ 339,700 Liabilitles 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 85,378 90,044 162,500 80,780 73,572 162,500 102,447 162,500 59,684 Total liabilities and equity $ 463,405 $ 399,487 $ 339,700 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 Current Yr 1 Yr Ago Sales $ 602,427 $ 475,390 Cost of goods sold Other operating expenses Interest expense Income tax expense $ 367,480 $ 309,004 186.752 120.274 10,241 10,934 7,832 7,131 Total costs and expenses 572.305 447,343 Net income $ 30,122 28.047 2$ Earnings per share %24 1.85 $ 1.73 (3-a) Compute inventory turnover. (3-b) For each ratio, determine if it improved or worsened in the current year. Complete this question by entering your answers in the tabs below. Required 3A Required 3B Compute inventory turnover. Inventory Turnover IChoose Denominator: Choose Numerator: Inventory Turnover %3D %3D Inventory tumover Current Yr: times %3D 1 Yr Ago: times %3D < Required 3A Required 38 >
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