connect ch-17
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| Simon Company’s year-end balance sheets follow. |
| At December 31 | 2014 | 2013 | 2012 | |||||||
| Assets | ||||||||||
| Cash | $ | 30,200 | $ | 35,500 | $ | 37,600 | ||||
| Accounts receivable, net | 87,400 | 63,500 | 49,500 | |||||||
| Merchandise inventory | 111,500 | 82,800 | 53,000 | |||||||
| Prepaid expenses | 10,800 | 9,425 | 4,400 | |||||||
| Plant assets, net | 282,000 | 258,000 | 225,000 | |||||||
| Total assets | $ | 521,900 | $ | 449,225 | $ | 369,500 | ||||
| Liabilities and Equity | ||||||||||
| Accounts payable | $ | 128,400 | $ | 75,500 | $ | 50,200 | ||||
| Long-term notes payable secured by mortgages on plant assets | 95,000 | 102,000 | 82,400 | |||||||
| Common stock, $10 par value | 164,000 | 164,000 | 164,000 | |||||||
| Retained earnings | 134,500 | 107,725 | 72,900 | |||||||
| Total liabilities and equity | $ | 521,900 | $ | 449,225 | $ | 369,500 | ||||
| The company’s income statements for the years ended December 31, 2014 and 2013, follow. |
| For Year Ended December 31 | 2014 | 2013 | |||||||||
| Sales | $ | 705,000 | $ | 540,000 | |||||||
| Cost of goods sold | $ | 430,050 | $ | 340,200 | |||||||
| Other operating expenses | 204,450 | 129,600 | |||||||||
| Interest expense | 12,000 | 12,700 | |||||||||
| Income taxes | 9,550 | 8,500 | |||||||||
| Total costs and expenses | 656,050 | 491,000 | |||||||||
| Net income | $ | 48,950 | $ | 49,000 | |||||||
| Earnings per share | $ | 2.98 | $ | 2.99 | |||||||
Evaluate the company's efficiency and profitability by computing the following for 2014 and 2013.
(1) Profit margin ratio.
(2) Total asset turnover.
(3) Return on total assets.
10 years ago
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