[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

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 15EA: The following select account data is taken from the records of Reese Industries for 2019. A. Use the...

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The following select account data is taken from the records of Reese Industries for 2019. A. Use the data provided to compute net sales for 2019. B. Prepare a simple income statement for the year ended December 31, 2019. C. Compute the gross margin for 2019. D. Prepare a multi-step income statement for the year ended December 31, 2019.
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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 $…
[The following information applies to the questions displayed below.] Selected comparative financial statements of Korbin Company follow. KORBIN COMPANY Comparative Income Statements For Years Ended December 31 Sales. Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income tax expense Net income Assets Current assets Long-term investments. Plant assets, net Total assets Liabilities and Equity Current liabilities KORBIN COMPANY Comparative Balance Sheets 2020 2021 $548,688 $ 420,340 330,310 263,974 218,378 156,366 77,914 58,007 49,382 36,990 127,296 94,997 91,082 61,369 16,941 12,581 $ 74,141 $ 48,788 Common stock Other paid-in capital Retained earnings Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income tax expense Net income December 31 2021 $ 62,574 % 0 % $ 41,881 $ 55,985 1,200 3,920 114,438 103,962 61,920 $177,012 $ 147,043 $ 121,825 $ 25,844 65,000 8,125…
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 $ 31,800 89,500 112,500 10,700 278,500 $ 523,000 $ 129,900 98,500 163,500 131, 100 $ 523,000 Current Year 1 Year Ago $ 411,225 209,550 12,100 9,525 $ 35,625 62,500 82,500 9,375 255,000 $ 445,000 $ 75,250 101,500 163,500 104,750 $ 445,000 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 $ 673,500 2 Years Ago $ 37,800 50, 200 54,000 5,000 230,500 $ 377,500 642,400 $ 31,100 $ 1.90 $ 51,250…
Selected comparative financial Statements of Kordin Company follow. Comparative Income Statements For Years Ended December 31 Sales Cost of goods sold Gross profit Selling expenses KORBIN COMPANY Administrative expenses Total expenses Income before taxes Income tax expense Net income Assets Current assets Long-term investments. Plant assets, net Total assets Liabilities and Equity Current liabilities KORBIN COMPANY Comparative Balance Sheets Assets Current assets Long-term investments Plant assets, net Total assets 2021 2020 2019 $548,688 $ 420,340 $ 291,700 330, 310 263,974 186,688 156,366 105,012 58,007 38,504 36,990 24,211 94,997 61,369 12,581 $ 48,788 Common stock Other paid-in capital Retained earnings Total liabilities and equity Liabilities and Equity Current liabilities Common stock Other paid-in capital Retained earnings Total liabilities and equity 218,378 77,914 49,382 127,296 91,082 16,941 $74,141 December 31 2021 $ 62,574 0 114,438 $177,012 $ 25,844 65,000 8,125 78,043…
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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 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 $ 26,605 89, 200 114,500 8,568 221, 258 $ 460,131 $ 112,281 84,775 162,500 100,575 1 Year Ago 2 Years Ago 31,099 62,900 85,000 8,163 209,503 $ 396,665 $364,884 185,433 10, 169 7,776 $ 65,696 89,408 162,500 79,061 $ 460, 131 $ 396,665 The company's income statements for the current year and one year ago follow. Assume that all sales are on credit: Current Year $ 598,170 $ 32,725 50, 800 568, 262 $ 29,908 $ 1.84…
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