Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 30,400 $ 36,250 $ 38,200 Accounts receivable, net 86,700 63,000 50,000 Merchandise inventory 110,000 81,800 53,500 Prepaid expenses 10,750 9,300 4,500 Plant assets, net 277,000 248,500 230,000 Total assets $ 514,850 $ 438,850 $ 376,200 Liabilities and Equity Accounts payable $ 129,600 $ 75,750 $ 51,200 Long-term notes payable secured by mortgages on plant assets 97,500 101,250 83,800 Common stock, $10 par value 163,500 163,500 163,500 Retained earnings 124,250 98,350 77,700 Total liabilities and equity $ 514,850 $ 438,850 $ 376,200 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 $ 715,000 $ 560,000 Cost of goods sold $ 414,700 $ 352,800 Other operating expenses 221,650 140,000 Interest expense 12,200 13,100 Income tax expense 9,500 8,650 Total costs and expenses 658,050 514,550 Net income $ 56,950 $ 45,450 Earnings per share $ 3.48 $ 2.78 For both the Current Year and 1 Year Ago, compute the following ratios:
(1-a) Profit margin ratio.
(1-b) Did profit margin improve or worsen in the Current Year versus 1 Year Ago?
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 $ 32,200 $ 36,500 $ 37,800 Accounts receivable, net 87,300 64,000 49,000 Merchandise inventory 111,000 81,200 54,000 Prepaid expenses 10,700 9,250 4,400 Plant assets, net 279,000 258,500 231,000 Total assets $ 520,200 $ 449,450 $ 376,200 Liabilities and Equity Accounts payable $ 128,400 $ 73,750 $ 50,600 Long-term notes payable secured by mortgages on plant assets 97,500 101,500 82,400 Common stock,...
Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 31,800 $ 35,625 $ 37,800 Accounts receivable, net 89,500 62,500 50,200 Merchandise inventory 112,500 82,500 54,000 Prepaid expenses 10,700 9,375 5,000 Plant assets, net 278,500 255,000 230,500 Total assets $ 523,000 $ 445,000 $ 377,500 Liabilities and Equity Accounts payable $ 129,900 $ 75,250 $ 51,250 Long-term notes payable secured by mortgages on plant assets 98,500 101,500 83,500 Common stock,...
Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 31,800 $ 35,625 $ 37,800 Accounts receivable, net 89,500 62,500 50,200 Merchandise inventory 112,500 82,500 54,000 Prepaid expenses 10,700 9,375 5,000 Plant assets, net 278,500 255,000 230,500 Total assets $ 523,000 $ 445,000 $ 377,500 Liabilities and Equity Accounts payable $ 129,900 $ 75,250 $ 51,250 Long-term notes payable secured by mortgages on plant assets 98,500 101,500 83,500 Common stock,...
Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 32,200 $ 36,500 $ 37,800 Accounts receivable, net 87,300 64,000 49,000 Merchandise inventory 111,000 81,200 54,000 Prepaid expenses 10,700 9,250 4,400 Plant assets, net 279,000 258,500 231,000 Total assets $ 520,200 $ 449,450 $ 376,200 Liabilities and Equity Accounts payable $ 128,400 $ 73,750 $ 50,600 Long-term notes payable secured by mortgages on plant assets 97,500 101,500 82,400 Common stock,...
Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 32,200 $ 36,500 $ 37,800 Accounts receivable, net 87,300 64,000 49,000 Merchandise inventory 111,000 81,200 54,000 Prepaid expenses 10,700 9,250 4,400 Plant assets, net 279,000 258,500 231,000 Total assets $ 520,200 $ 449,450 $ 376,200 Liabilities and Equity Accounts payable $ 128,400 $ 73,750 $ 50,600 Long-term notes payable secured by mortgages on plant assets 97,500 101,500 82,400 Common stock,...
Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 31,800 $ 35,625 $ 37,800 Accounts receivable, net 89,500 62,500 50,200 Merchandise inventory 112,500 82,500 54,000 Prepaid expenses 10,700 9,375 5,000 Plant assets, net 278,500 255,000 230,500 Total assets $ 523,000 $ 445,000 $ 377,500 Liabilities and Equity Accounts payable $ 129,900 $ 75,250 $ 51,250 Long-term notes payable secured by mortgages on plant assets 98,500 101,500 83,500 Common stock,...
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 $ 30,400 86,500 111,500 10,850 281,000 $520, 250 $ 36,250 $ 38,000 62,500 50,500 83,800 54,000 9,450 5,500 251,000 229,000 $443,000 $ 377,000 $130,000...
Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 32,200 $ 35,750 $ 38,200 Accounts receivable, net 88,700 63,000 50,500 Merchandise inventory 111,500 81,400 53,500 Prepaid expenses 11,000 9,450 5,100 Plant assets, net 281,000 251,500 234,000 Total assets $ 524,400 $ 441,100 $ 381,300 Liabilities and Equity Accounts payable $ 129,600 $ 75,750 $ 50,200 Long-term notes payable secured by mortgages on plant assets 97,500 100,000 83,000 Common stock,...
Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 31,200 $ 35,500 $ 37,600 Accounts receivable, net 89,200 63,500 50,000 Merchandise inventory 112,000 83,000 52,000 Prepaid expenses 10,250 9,350 4,300 Plant assets, net 280,000 251,000 231,000 Total assets $ 522,650 $ 442,350 $ 374,900 Liabilities and Equity Accounts payable $ 129,200 $ 74,500 $ 51,400 Long-term notes payable secured by mortgages on plant assets 95,000 98,500 83,800 Common stock,...
Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 31,800 $ 35,625 $ 37,800 Accounts receivable, net 89,500 62,500 50,200 Merchandise inventory 112,500 82,500 54,000 Prepaid expenses 10,700 9,375 5,000 Plant assets, net 278,500 255,000 230,500 Total assets $ 523,000 $ 445,000 $ 377,500 Liabilities and Equity Accounts payable $ 129,900 $ 75,250 $ 51,250 Long-term notes payable secured by mortgages on plant assets 98,500 101,500 83,500...