Question

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 $ 31,400 86,400 110,000 10,850 279,000 $517,650 $ 35,500 $ 37,800 64.900 50,000 81,200 53,000 9,309 4,900 255,000 227,000 $445,000 $ 372,700 $129,600 $ 73,750 $ 50,200 96,500 161,000 130,550 $517,650 100,000 81,400 161,000 161,000 110,250 80,100 $445,000 $372,700 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 Interest expense Income tax expense Total costs and expenses Net income Current Yr $ 785,000 $455,300 243,350 11,700 9,350 719,700 $ 65,300 $ 4.06 1 Yr Ago $ 620,000 $ 390,600 142,600 13, 100 8,650 554,950 $ 65,050 Earnings per share $ 4.04 For both the Current Year and 1 Year Ago, compute the following ratios: 2) Total asset turnover. Total Asset Turnover Choose Denominator: Choose Numerator: Total Asset Turnover 1 Total asset turnover Current Year: times 1 Year Ago: times

Answer 1