For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Current Year $ 411, 225 209,550 12, 100 9,525 $ 673,500 642, 400 $31, 100 $ 1.90 1 Year Ago $ 345,500 134,980 13, 300 8,845 $ 532,000 502, 625 $ 29,375 $ 1.80 Earnings per share For both the Current Year and 1 Year Ago, compute the following ratios: (1-a) Profit margin ratio. (1-b) Did profit margin improve or worsen in the Current Year versus 1 Year Ago? (2) Total asset turnover. (3-a) Return on total assets. (3-b) Based on return on total assets, did Simon's operating efficiency improve or worsen in the Current Year versus 1 Year Ago?
For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Current Year $ 411, 225 209,550 12, 100 9,525 $ 673,500 642, 400 $31, 100 $ 1.90 1 Year Ago $ 345,500 134,980 13, 300 8,845 $ 532,000 502, 625 $ 29,375 $ 1.80 Earnings per share For both the Current Year and 1 Year Ago, compute the following ratios: (1-a) Profit margin ratio. (1-b) Did profit margin improve or worsen in the Current Year versus 1 Year Ago? (2) Total asset turnover. (3-a) Return on total assets. (3-b) Based on return on total assets, did Simon's operating efficiency improve or worsen in the Current Year versus 1 Year Ago?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Required information
Use the following information for the Exercises below. (Static)
[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
$ 31,800
89,500
112,500
10, 700
278,500
$ 523,000
$ 129,900
98,500
163, 500
131, 100
$ 523,000
1 Year Ago
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:
< Prev
$ 35,625
62,500
82,500
9,375
255,000
$ 445,000
$ 75,250
101, 500
163,500
104, 750
NS
2 Years Ago
$ 51, 250
83,500
163, 500
79, 250
$ 445,000 $ 377,500
of 9
$ 37,800
50, 200
54,000
5,000
230,500
$ 377,500
Next >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1ecf61ef-f650-4520-87fd-97345184f757%2F7f2ac636-3ac1-4d33-a9bf-869238648286%2F1jq9r7_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
Use the following information for the Exercises below. (Static)
[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
$ 31,800
89,500
112,500
10, 700
278,500
$ 523,000
$ 129,900
98,500
163, 500
131, 100
$ 523,000
1 Year Ago
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:
< Prev
$ 35,625
62,500
82,500
9,375
255,000
$ 445,000
$ 75,250
101, 500
163,500
104, 750
NS
2 Years Ago
$ 51, 250
83,500
163, 500
79, 250
$ 445,000 $ 377,500
of 9
$ 37,800
50, 200
54,000
5,000
230,500
$ 377,500
Next >
![Required information
For Year Ended December 31
Sales
Cost of goods sold
Other operating expenses
Current Year
$ 411, 225
209,550
12, 100
9,525
$ 673,500
642, 400
$31,100
$ 1.90
:. -. - == .......
< Prev.
$ 345,500
134, 980
13,300
8,845
Interest expense
Income tax expense
Total costs and expenses
Net income
Earnings per share
For both the Current Year and 1 Year Ago, compute the following ratios:
(1-a) Profit margin ratio.
(1-b) Did profit margin improve or worsen in the Current Year versus 1 Year Ago?
(2) Total asset turnover.
(3-a) Return on total assets.
(3-b) Based on return on total assets, did Simon's operating efficiency improve or worsen in the Current Year versus 1 Year Ago?
S
2
1 Year Ago
of 9
hp
$ 532,000
+++
502,625
$ 29, 375
$ 1.80
Help
Next >
9 US
Sa
M](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1ecf61ef-f650-4520-87fd-97345184f757%2F7f2ac636-3ac1-4d33-a9bf-869238648286%2Fk5myo9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
For Year Ended December 31
Sales
Cost of goods sold
Other operating expenses
Current Year
$ 411, 225
209,550
12, 100
9,525
$ 673,500
642, 400
$31,100
$ 1.90
:. -. - == .......
< Prev.
$ 345,500
134, 980
13,300
8,845
Interest expense
Income tax expense
Total costs and expenses
Net income
Earnings per share
For both the Current Year and 1 Year Ago, compute the following ratios:
(1-a) Profit margin ratio.
(1-b) Did profit margin improve or worsen in the Current Year versus 1 Year Ago?
(2) Total asset turnover.
(3-a) Return on total assets.
(3-b) Based on return on total assets, did Simon's operating efficiency improve or worsen in the Current Year versus 1 Year Ago?
S
2
1 Year Ago
of 9
hp
$ 532,000
+++
502,625
$ 29, 375
$ 1.80
Help
Next >
9 US
Sa
M
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