Exercise 13-10 (Algo) Analyzing efficiency and profitability LO P3 [Alternate Version] [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 1 Year Ago 2 Years Ago $ 32,400 $ 36,250 87,700 111,500 10,700 279,000 $ 521,300 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 $ 128,400 95,500 161,000 136,400 $ 521,300 $ 443,950 62,000 83,200 9,500 253,000 $ 443,950 Current Year $ 460,550 234,050 11,900 9,500 $ 73,250 99,500 161,000 110,200 The company's income statements for the Current Year and 1 Year Ago, follow. $ 755,000 716,000 $ 39,000 $ 2.42 $ 37,600 50,000 52,500 4,900 230,000 $ 375,000 $ 50,200 80,200 161,000 83,600 $ 375,000 For both the Current Year and 1 Year Ago compute the following ratios: 1 Year Ago $ 409,500 144,900 12,900 8,625 $ 630,000 575,925 $ 54,075 $ 3.36
Exercise 13-10 (Algo) Analyzing efficiency and profitability LO P3 [Alternate Version] [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 1 Year Ago 2 Years Ago $ 32,400 $ 36,250 87,700 111,500 10,700 279,000 $ 521,300 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 $ 128,400 95,500 161,000 136,400 $ 521,300 $ 443,950 62,000 83,200 9,500 253,000 $ 443,950 Current Year $ 460,550 234,050 11,900 9,500 $ 73,250 99,500 161,000 110,200 The company's income statements for the Current Year and 1 Year Ago, follow. $ 755,000 716,000 $ 39,000 $ 2.42 $ 37,600 50,000 52,500 4,900 230,000 $ 375,000 $ 50,200 80,200 161,000 83,600 $ 375,000 For both the Current Year and 1 Year Ago compute the following ratios: 1 Year Ago $ 409,500 144,900 12,900 8,625 $ 630,000 575,925 $ 54,075 $ 3.36
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 9.17E: Profitability metrics The following selected data were taken from the financial statements of The...
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![Required information.
Exercise 13-10 (Algo) Analyzing efficiency and profitability LO P3 [Alternate Version]
[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 1 Year Ago
$ 36,250
$ 32,400
87,700
62,000
111,500
83,200
10,700
279,000
9,500
253,000
$ 521,300
$ 443,950
$ 128,400
95,500
161,000
136,400
Liabilities and Equity
Accounts payable
Long-term notes payable
Common stock, $10 par value.
Retained earnings
Total liabilities and equity
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
$ 50,200
80,200
161,000
83,600
$ 521,300 $ 443,950 $ 375,000
Current Year
$ 73,250
99,500
161,000
110,200
$ 460,550
234,050
11,900
9,500
$ 755,000
2 Years Ago
$ 37,600
50,000
52,500
4,900
230,000
$ 375,000
716,000
$ 39,000
$ 2.42
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 Year Ago
$ 409,500
144,900
12,900
8,625
$ 630,000
575,925
$ 54,075
$ 3.36](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F902b6328-d5d0-4c0b-8290-aafdf8186a48%2Ff3a2daaa-be55-4def-9757-5421d1618991%2Fgvprwe_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information.
Exercise 13-10 (Algo) Analyzing efficiency and profitability LO P3 [Alternate Version]
[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 1 Year Ago
$ 36,250
$ 32,400
87,700
62,000
111,500
83,200
10,700
279,000
9,500
253,000
$ 521,300
$ 443,950
$ 128,400
95,500
161,000
136,400
Liabilities and Equity
Accounts payable
Long-term notes payable
Common stock, $10 par value.
Retained earnings
Total liabilities and equity
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
$ 50,200
80,200
161,000
83,600
$ 521,300 $ 443,950 $ 375,000
Current Year
$ 73,250
99,500
161,000
110,200
$ 460,550
234,050
11,900
9,500
$ 755,000
2 Years Ago
$ 37,600
50,000
52,500
4,900
230,000
$ 375,000
716,000
$ 39,000
$ 2.42
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 Year Ago
$ 409,500
144,900
12,900
8,625
$ 630,000
575,925
$ 54,075
$ 3.36
![Exercise 13-10 (Algo) Part 2 [Alternate Version]
(2) Compute total asset turnover for the current year and one year ago.
Current Year:
1 Year Ago:
Numerator:
Total Asset Turnover
Denominator:
= Total Asset Turnover
Total asset turnover
times
times
11
=
=](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F902b6328-d5d0-4c0b-8290-aafdf8186a48%2Ff3a2daaa-be55-4def-9757-5421d1618991%2Fl7b28vl_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 13-10 (Algo) Part 2 [Alternate Version]
(2) Compute total asset turnover for the current year and one year ago.
Current Year:
1 Year Ago:
Numerator:
Total Asset Turnover
Denominator:
= Total Asset Turnover
Total asset turnover
times
times
11
=
=
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