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11 Required information [The following information applies to the questions displayed below.) 2 of 3 Simon Company's year-end balance sheets follow. Current Year 1 Year Ago 2 Years 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 Common stock, $10 par value Retained earnings Total liabilities and equity $ 30,600 89, 100 110,000 10,450 282,000 $ 522,150 $ 36,500 63,500 82,000 9,250 255,000 $ 446,250 $ 38,400 50,000 52,000 4,700 227,000 $ 372, 100 Book "rint $ 128, 800 96,000 164,000 133, 350 $ 522,150 $ 74,500 99, 250 164,000 108,500 $ 446, 250 $ 51,000 82,800 164,000 74,300 $ 372, 100 o rences 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 Earnings per share Current Year $ 755,000 $ 445,450 241,600 12,200 9,450 708, 700 $ 46,300 $ 2.82 1 Year Ago $ 540,000 $ 345,600 124,200 13,000 8,750 491,550 $ 48,450 $ 2.95 For both the Current Year and 1 Year Ago, compute the following ratios: < Prev 11 12 of 12 HE Next >
$ 445, 450 241,600 12,200 9,450 $ 345,600 124, 200 13,000 8,750 Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Earnings per share 708, 700 $ 46,300 491,550 $ 48,450 $ 2.95 $ 2.82 For both the Current Year and 1 Year Ago, compute the following ratios: (2) Compute total asset turnover for the current year and one year ago. Numerator: = Total Asset Turnover Net sales Total Asset Turnover Denominator: 1 Average total assets 755,000/ 540,000/ = Total asset turnover Current Year: $ o times 1 Year Ago: $ 0 times < Prev 11 12 of 12 Next >
(3-a) Compute return on total assets for the current year and one year ago. (3-b) 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 3B Compute return on total assets for the current year and one year ago. Return On Total Assets Numerator: Denominator: = Return On Total Assets Net income = Return on total assets | Average total assets 46,300 / Current Year: $ = 0 % 1 Year Ago: $ 48,450 0 %