Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs...
Simon Company’s year-end balance sheets follow.
| At December 31 | Current Yr | 1 Yr Ago | 2 Yrs Ago | ||||||
| Assets | |||||||||
| Cash | $ | 31,900 | $ | 34,600 | $ | 36,400 | |||
| Accounts receivable, net | 89,700 | 64,500 | 52,700 | ||||||
| Merchandise inventory | 75,437 | 83,700 | 53,600 | ||||||
| Prepaid expenses | 11,004 | 9,345 | 3,590 | ||||||
| Plant assets, net |
376,959 |
252,855 | 173,710 | ||||||
| Total assets | $ | 585,000 | $ | 445,000 | $ | 320,000 | |||
| Liabilities and Equity | |||||||||
| Accounts payable | $ | 141,295 | $ | 77,461 | $ | 42,240 | |||
| Long-term notes payable secured by mortgages on plant assets |
108,880 | 102,350 | 70,013 | ||||||
| Common stock, $10 par value | 162,500 | 162,500 | 162,500 | ||||||
| Retained earnings | 172,325 | 102,689 | 45,247 | ||||||
| Total liabilities and equity | $ | 585,000 | $ | 445,000 | $ | 320,000 | |||
The company’s income statements for the Current Year and 1 Year
Ago, follow.
| For Year Ended December 31 | Current Yr | 1 Yr Ago | ||||||||||
| Sales | $ | 760,500 | $ | 529,550 | ||||||||
| Cost of goods sold | $ | 463,905 | $ | 344,208 | ||||||||
| Other operating expenses | 235,755 | 133,976 | ||||||||||
| Interest expense | 12,929 | 12,180 | ||||||||||
| Income tax expense | 9,887 | 7,943 | ||||||||||
| Total costs and expenses | 722,476 | 498,307 | ||||||||||
| Net income | $ | 38,024 | $ | 31,243 | ||||||||
| Earnings per share | $ | 2.34 | $ | 1.92 | ||||||||
Additional information about the company follows.
| Common stock market price, December 31, Current Year | $ | 32.00 |
| Common stock market price, December 31, 1 Year Ago | 30.00 | |
| Annual cash dividends per share in Current Year | 0.24 | |
| Annual cash dividends per share 1 Year Ago | 0.12 | |
For both the Current Year and 1 Year Ago, compute the following
ratios:
1. Return on common stockholders' equity.
2. Price-earnings ratio on December 31.
2a. Assuming Simon's competitor has a
price-earnings ratio of 7, which company has higher market
expectations for future growth?
3. Dividend yield.
Compute the dividend yield for each year. (Round your answers to 2 decimal places.)
|
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Homework Answers
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Simon Company’s year-end balance sheets follow.
At December 31
Current Yr
1 Yr Ago
2 Yrs...
Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs...
Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 31,800 $ 34,300 $ 36,200 Accounts receivable, net 89,700 62,500 53,300 Merchandise inventory 6,783 83,700 56,600 Prepaid expenses 10,986 9,345 3,665 Plant assets, net 450,731 255,155 190,235 Total assets $ 590,000 $ 445,000 $ 340,000 Liabilities and Equity Accounts payable $ 146,910 $ 73,701 $ 43,534 Long-term notes payable secured by mortgages on plant assets 112,029 100,303 76,643 Common stock,...
Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs...
Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago $ 31,600 $ 34,300 $ 37,600 88,300 63,500 60,000 2,570 83,700 51,900 10,950 3,308 431,580 229,856 157, 192 $565,000 $420,000 $ 310,000 8,644 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $143,499...
Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs...
Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago $ 31,900 $ 34,700 $ 37,200 88,600 62,500 53,300 43,574 82,700 56,500 11, 1558, 7593, 342 394,771 241, 341 159, 658 $570,000 $430,000 $ 310,000 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and...
Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ago At December...
Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ago 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 secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 31,200 $ 34,200 $ 37,700 88,100 64,600 54,500 22,977 82,300 55,600 9,952 8,861 4,070 387,771 245,039 218,130 $540,000 $435,000 $ 370,000 $131,771 $...
Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ago $ 31,300...
Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ago $ 31,300 $ 35,000 $ 37,500 88,000 64,800 59,200 80, 408 83,500 57,000 10,271 10,187 3,734 320,021 301,513 192,566 $530,000 $495,000 $350,000 sok 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 secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity nt...
Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs...
Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 34,945 $ 43,374 $ 44,312 Accounts receivable, net 104,412 72,956 58,492 Merchandise inventory 132,591 98,354 63,559 Prepaid expenses 11,369 11,386 4,874 Plant assets, net 327,281 300,308 276,363 Total assets $ 610,598 $ 526,378 $ 447,600 Liabilities and Equity Accounts payable $ 155,080 $ 90,737 $ 57,902 Long-term notes payable secured by mortgages on plant assets 114,792 119,856 98,920 Common stock,...
Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs...
Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 34,945 $ 43,374 $ 44,312 Accounts receivable, net 104,412 72,956 58,492 Merchandise inventory 132,591 98,354 63,559 Prepaid expenses 11,369 11,386 4,874 Plant assets, net 327,281 300,308 276,363 Total assets $ 610,598 $ 526,378 $ 447,600 Liabilities and Equity Accounts payable $ 155,080 $ 90,737 $ 57,902 Long-term notes payable secured by mortgages on plant assets 114,792 119,856 98,920 Common stock,...
Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs...
Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 28,921 $ 33,806 $ 35,215 Accounts receivable, net 89,500 62,500 51,800 Merchandise inventory 112,500 84,500 51,000 Prepaid expenses 9,314 8,874 3,913 Plant assets, net 254,909 237,168 217,372 Total assets $ 495,144 $ 426,848 $ 359,300 Liabilities and Equity Accounts payable $ 122,058 $ 71,416 $ 46,953 Long-term notes payable secured by mortgages on plant assets 92,156 97,193 78,611 Common stock,...
Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs...
Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 29,254 $ 34,195 $ 35,264 Accounts receivable, net 89,400 62,900 51,400 Merchandise inventory 112,000 83,000 59,000 Prepaid expenses 9,421 8,976 3,918 Plant assets, net 255,755 238,369 206,618 Total assets $ 495,830 $ 427,440 $ 356,200 Liabilities and Equity Accounts payable $ 123,462 $ 72,237 $ 47,018 Long-term notes payable secured by mortgages on plant assets 93,216 98,311 78,720 Common stock,...
Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs...
Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 26,445 $ 30,912 $ 31,878 Accounts receivable, net 89,500 62,900 51,500 Merchandise inventory 114,000 85,000 56,000 Prepaid expenses 8,516 8,114 3,542 Plant assets, net 209,763 199,474 179,080 Total assets $ 448,224 $ 386,400 $ 322,000 Liabilities and Equity Accounts payable $ 111,608 $ 65,302 $ 42,504 Long-term notes payable secured by mortgages on plant assets 84,266 88,872 71,162 Common stock,...
Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago $ 31,600 $ 34,300 $ 37,600 88,300 63,500 60,000 2,570 83,700 51,900 10,950 3,308 431,580 229,856 157, 192 $565,000 $420,000 $ 310,000 8,644 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $143,499...
Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago $ 31,900 $ 34,700 $ 37,200 88,600 62,500 53,300 43,574 82,700 56,500 11, 1558, 7593, 342 394,771 241, 341 159, 658 $570,000 $430,000 $ 310,000 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and...
Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ago 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 secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 31,200 $ 34,200 $ 37,700 88,100 64,600 54,500 22,977 82,300 55,600 9,952 8,861 4,070 387,771 245,039 218,130 $540,000 $435,000 $ 370,000 $131,771 $...
Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ago $ 31,300 $ 35,000 $ 37,500 88,000 64,800 59,200 80, 408 83,500 57,000 10,271 10,187 3,734 320,021 301,513 192,566 $530,000 $495,000 $350,000 sok 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 secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity nt...
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