70.2K

Verified Solution

Link Copied!

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 86,300 110,500 10,880 280,000 $519,000 $ 35,000 $ 37,080 63,500 50,000 83,400 54,888 9,450 5,800 258,500 232,000 $449,850 $. 378,000 $129,600 5.73,250 $ 51,680 95,500 161,000 132,900 $519,000 191,250 82,200 161,000 161,000 114,358 83,200 $449,850 $ 378,000 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 $765,000 $570,000 Cost of goods sold $451, 350 5359,109 Other operating expenses 237,150 142,500 Interest expense 11,900 13,400 Income tax expense 9,350 8,700 Total costs and expenses 709,750 523,700 Net income $ 55,250 $ 46,300 Earnings per share $ 3.43 $ 2.88 For both the Current Year and 1 Year Ago, compute the following ratios: (3-a) Return on total assets (3-6) Based on return on total assets, did Simon's operating efficiency improve or worsen in the Current Year versus 1 Year Ago? Complete this question by entering your answers in the tabs below. Required 3A Required 38 Return on total assets Return On Total Assets Choose Numerator: Choose Denominator Return On Total Assets Rolumn on totes Current Year: 1 Year Ago Required 3B >

Answer & Explanation Solved by verified expert

See Answer