(1-a) Compute profit margin ratio for the current year and one year ago.(1-b) Did profit margin improve or worsen in the Current Year versus 1 Year Ago?Complete this question by entering your answers in the tabs below.Required 1A Required 18Compute profit margin ratio for the current year and one year ago.Profit Margin RatioCurrent Year:1 Year Ago:Net incomeNumerator:1Required 1ADenominator:Required 18Profit Margin RatioProfit margin ratio0%0% Required information[The following information applies to the questions displayed below.]Simon Company's year-end balance sheets follow.At December 31AssetsCashAccounts receivable, netMerchandise inventoryPrepaid expensesPlant assets, netTotal assetsLiabilities and EquityAccounts payableLong-term notes payable.Common stock, $10 par valueRetained earningsTotal liabilities and equityCurrent Year$ 30,80088,100111,00010,900280,000$ 520,800$ 128,40098,000163,500130,900$ 520,800Current Year1 Year Ago$ 35,00061,50082,4009,300250,500$ 438,700$ 478,850243,35012,1009,550$73,750101,750163,50099,700$438,700The company's income statements for the Current Year and 1 Year Ago, follow.For Year Ended December 31SalesCost of goods soldOther operating expenses$785,000Interest expenseIncome tax expenseTotal costs and expensesNet incomeEarnings per shareFor both the Current Year and 1 Year Ago, compute the following ratios:743,850$ 41,150$ 2.522 Years Ago$38,20050,000$2,5004,800230,000$375,500$50,20083,400163,50078,400$375,500(1-0) Compute profit margin ratio for the current year and one year ago.(1-b) Did profit margin improve or worsen in the Current Year versus 1 Year Ago?$ 378,000150,0001 Year Ago13,0008,825$ 600,000549,825$50,175$ 3.07

Profit Margin Ratio: It refers to a financial ratio that measures the profits earned by the…

(1-0) Compute profit margin ratio for the current year and one year ago. (1-b) Did profit margin improve or worsen in the Current Year versus 1 Year Ago? Complete this question by entering your answers in the tabs below. Required 1A Required 18 Compute profit margin ratio for the current year and one year ago. Profit Margin Ratio Current Year: 1 Year Ago: Net income Numerator: 1 Required 1A Denominator: Required 18 > Profit Margin Ratio Profit margin ratio 0% 0%

(1-0) Compute profit margin ratio for the current year and one year ago. (1-b) Did profit margin improve or worsen in the Current Year versus 1 Year Ago? Complete this question by entering your answers in the tabs below. Required 1A Required 18 Compute profit margin ratio for the current year and one year ago. Profit Margin Ratio Current Year: 1 Year Ago: Net income Numerator: 1 Required 1A Denominator: Required 18 > Profit Margin Ratio Profit margin ratio 0% 0%

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter17: Financial Statement Analysis

Section: Chapter Questions

Problem 1FSA: Financial Statement Analysis The financial statements for Nike, Inc., are presented in Appendix C at...

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