Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets $ 25,494 73,888 91,962 8,459 236,656 $ 436,459 $ 29, 800 $ 30,737 52,676 69,608 7,901 216, 273 $ 376,258 $ 307,400 Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net 40,577 42,778 3,348 189,960 Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings $ 106,505 $ 64,223 $ 40,577 83,695 89,136 162,500 83,759 162,500 60,399 68,615 162,500 35,708 Total liabilities and equity $ 436,459 $ 376, 258 $ 307,400 (1-a) Compute the current ratio for each of the three years. (1-b) Did the current ratio improve or worsen over the three year period? (2-a) Compute the acid-test ratio for each of the three years. (2-b) Did the acid-test ratio improve or worsen over the three year period?

Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets $ 25,494 73,888 91,962 8,459 236,656 $ 436,459 $ 29, 800 $ 30,737 52,676 69,608 7,901 216, 273 $ 376,258 $ 307,400 Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net 40,577 42,778 3,348 189,960 Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings $ 106,505 $ 64,223 $ 40,577 83,695 89,136 162,500 83,759 162,500 60,399 68,615 162,500 35,708 Total liabilities and equity $ 436,459 $ 376, 258 $ 307,400 (1-a) Compute the current ratio for each of the three years. (1-b) Did the current ratio improve or worsen over the three year period? (2-a) Compute the acid-test ratio for each of the three years. (2-b) Did the acid-test ratio improve or worsen over the three year period?

Name: Simon Company's year-end balance sheets follow.At December 31Current
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Description: Simon Company's year-end balance sheets follow.At December 31Current Yr1 Yr Ago2 Yrs AgoAssets$ 25,49429,800 $52,67669,6087,901216,273Cash$Accounts receivable, netMerchandise inventoryPrepaid expensesPlant assets, net73,88891,9628,459236,65630,73740

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 56P: The following selected information is taken from the financial statements of Arnn Company for its...

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The following selected information is taken from the financial statements of Arnn Company for its most recent year of operations: During the year, Arnn had net sales of 2.45 million. The cost of goods sold was 1.3 million. Required: Note: Round all answers to two decimal places. 1. Compute the current ratio. 2. Compute the quick or acid-test ratio. 3. Compute the accounts receivable turnover ratio. 4. Compute the accounts receivable turnover in days. 5. Compute the inventory turnover ratio. 6. Compute the inventory turnover in days.
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 $ 30,847 85,864 112,410 9,639 278,899 $4 36,772 $ 37,181 60,602 82,558 9,090 257, 236 49,574 52,807 4,131 224,507 Total assets $ 517,659 $ 446,258 S 368, 200 Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings $ 131,475 73,909 $ 48,116 95,373 163, 500 127,311 83,813 163, 500 72,771 $ 446,258 $ 368,200 101,613 163, 500 107,236 Total liabilities and equity $ 517,659 1. Express the balance sheets in common-size percents. (Do not round intermediate calculations and answers to 1 decimal place.) 2. Assuming annual sales have not changed in the last three years, is the change in accounts receivab assets favorable or unfavorable?
Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets $ 25,494 29,800 $ 52,676 69,608 7,901 216,273 Cash $ Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net 73,888 91,962 8,459 236,656 30,737 40,577 42,778 3,348 189,960 Total assets $ 436,459 $ 376, 258 $ 307,400 Liabilities and Equity $ 106,505 64, 223 $ 40,577 Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings $ 83,695 68,615 162,500 35,708 $ 376, 258 $ 307,400 89,136 162,500 162,500 83,759 60,399 Total liabilities and equity $ 436,459 (1-a) Compute the current ratio for each of the three years. (1-b) Did the current ratio improve or worsen over the three year period? (2-a) Compute the acid-test ratio for each of the three years. (2-b) Did the acid-test ratio improve or worsen over the three year period?
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 Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity Interest expense Income tax expense Total costs and expenses Net income Current Year $ 35,467 102,794 127,925 11,888 335,329 $ 613,403 For both the current year and one year ago, compute the following ratios: ه له مه له :. .: له The company's income statements for the Current Year and 1 Year Ago, follow. For Year Ended December 31 Sales Cost of goods sold Other operating expenses $ 149,683 117,626 162,500 183,594 $ 613,403 $ 486,429 247,201 Current Year 13,556 10,367 Vanu $ 797,424 Earnings per share Additional information about the company follows. Common stock market price, December 31, Current Year Common stock market price, December 31, 1 Year Ago Annual cash dividends per share…
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 Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings. Total liabilities and equity Current Year Interest expense Income tax expense Total costs and expenses Net income Earnings per share $ 25,693 75,195 91,790 7,868 226,383 $426,929 $ 106,305 81,065 162,500 77,059 For both the current year and one year ago, compute the following ratios: $ 338,555 172,052 The company's income statements for the current year and 1 year ago, follow. For Year Ended December 31 Sales Cost of goods sold Other operating expenses 9,435 7,215 Exercise 17-10 (Algo) Analyzing efficiency and profitability LO P3 Current Year 1 Year Ago $ 40,894 $ 60,955 86,343 66,412 163,500 163,500 57,244 38,994 $426,929 $ 368,042 $ 309,800 $ 30,032 51,526 68,088 7,729 210,667 $ 368,042 $ 555,008 527,257 $…
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 Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity Current Year $ 27,970 80, 264 100,917 9,097 251, 134 $ 469,382 $ 116,876 90,891 163,500 98,115 $ 469,382 $ 372,220 189,161 10,373 7,933 For both the current year and one year ago, compute the following ratios: Current Year 1 Year Ago $ 31,400 58,349 77,104 8,412 229,375 $ 404,640 Exercise 13-9 (Algo) Analyzing risk and capital structure LO P3 $ 70,436 92,137 163,500 78,567 $ 404,640 The company's income statements for the current year and one year ago, follow. For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Earnings per share $ 610,197 579,687 $ 30,510 $1.88 2 Years Ago $ 312,989…
Calculate the activity and liquidity ratios for P for the year ended 31 December 20X9. Revenue Gross profit Inventory Trade receivables Trade payables Cash Short-term investments Other current liabilities $m 1,867.5 489.3 147.9 393.4 275.1 53.8 6.2 284.3 Current ratio= Current assets Current liabilities Inventory days Inventory days = inventory+ cost of sales × 365 Receivable days Receivable days - receivables + credit sales x 365 Payable days Payable days = payables ÷ credit purchases x 365.
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Required information [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 Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity Current Year Interest expense Income tax expense Total costs and expenses Net income Earnings per share $ 26,605 89, 200 114,500 8,568 221, 258 $ 460,131 $ 112,281 84,775 162,500 100,575 1 Year Ago $ 65,696 89,408 162,500 79,061 $ 460, 131 $ 396,665 Current Year $ 31,099 62,900 85,000 8,163 209,503 $ 396,665 $364,884 185,433 10,169 7,776 The company's income statements for the current year and one year ago follow. Assume that all sales are on credit: For Year Ended December 31 Sales Cost of goods sold Other operating expenses $ 598,170 2 Years Ago $ 32,725 50,800 58,000 3,636 192, 139 $…
Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 36,740 $ 42,946 $ 44,736 Accounts receivable, net 108,593 74,412 60,238 Merchandise inventory 136,536 96,363 63,531 Prepaid expenses 11,949 11,385 5,020 Plant assets, net 322,735 306,405 273,875 Total assets $ 616,553 $ 531,511 $ 447,400 Liabilities and Equity Accounts payable $ 153,522 $ 89,825 $ 59,647 Long-term notes payable secured bymortgages on plant assets 113,594 125,915 100,853 Common stock, $10 par value 163,500 163,500 163,500 Retained earnings 185,937 152,271 123,400 Total liabilities and equity $ 616,553 $ 531,511 $ 447,400 1. Express the balance sheets in common-size percents. (Do not round intermediate calculations and round your final percentage answers to 1…
Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 34,026 $ 39,379 $ 39,798 Accounts receivable, net 98,617 68,224 53,063 Merchandise inventory 120,309 91,975 57,666 Prepaid expenses 10,957 10,544 4,602 Plant assets, net 307,089 282,118 255,071 Total assets $ 570,998 $ 492,240 $ 410,200 Liabilities and Equity Accounts payable $ 142,179 $ 81,525 $ 53,063 Long-term notes payable secured bymortgages on plant assets 104,127 112,083 88,841 Common stock, $10 par value 162,500 162,500 162,500 Retained earnings 162,192 136,132 105,796 Total liabilities and equity $ 570,998 $ 492,240 $ 410,200 The company’s income statements for the Current Year and 1 Year Ago, follow. For Year Ended December 31 Current Yr…
Simon Company's year-end balance sheets follow. At December 31 Assets Current Yr 1 Yr Ago 2 Yrs Ago Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net $ 31,600 88,000 112,500 10,650 281,000 $ 36, 250 $ 38,400 62,000 83,800 9,350 249,500 49,500 52,500 4,500 235,000 Total assets $523,750 $440,900 $ 379,900 Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings $128,400 $ 74,750 $ 50,800 97,000 160,500 137,850 $523,750 98,250 160, 500 107,400 81,600 160,500 87,000 $440,900 $ 379,900 Total liabilities and equity The company's income statements for the Current Year and 1 Year Ago, follow. For Year Ended December 31 Sales 1 Yr Ago $ 620,000 Current Yr $755,000 Cost of goods sold other operating expenses Interest expense $445,450 234,050 11,300 9,550 $390,600 148,800 12,700 8,925 Income tax expense Total costs and expenses 700,350 561,025 $ 54,650 $ 58,975 Net income…