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Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Current Year 1 Year Ago $ 42,304 $ 35,467 102,794 127,925 11,888 335,329 74,031 95,871 11,327 305, 263 $ 613,403 $ 528,796 Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity For both the current year and one year ago, compute the following ratios: $ 486,429 247,201 $ 149,683 117,626 162,500 183,594 $ 88,473 125,272 162,500 152,551 $ 613,403 $ 528,796 13,556 10,367 The company's income statements for the Current Year and 1 Year Ago, follow. Current Year 1 Year Ago For Year Ended December 31 Sales Cost of goods sold Other operating expenses $ 797,424 Interest expense Income tax expense Total costs and expenses Net income Earnings per share Additional information about the company follows. Common stock market price, December 31, Current Year Common stock market price, December 31, 1 Year Ago Annual cash dividends per share in Current Year 757,553 $ 39,871 $2.45 2 Years Ago $ 409,024 159,205 14,473 9,439 $ 32.00 30.00 0.28 $ 43,194 57,592 63, 194 4,751 267,569 $ 436,300 $ 57,016 94,494 163,500 121,290 $ 436,300 $ 629,267 592, 141 $ 37, 126 $2.28

Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Current Year 1 Year Ago $ 42,304 $ 35,467 102,794 127,925 11,888 335,329 74,031 95,871 11,327 305, 263 $ 613,403 $ 528,796 Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity For both the current year and one year ago, compute the following ratios: $ 486,429 247,201 $ 149,683 117,626 162,500 183,594 $ 88,473 125,272 162,500 152,551 $ 613,403 $ 528,796 13,556 10,367 The company's income statements for the Current Year and 1 Year Ago, follow. Current Year 1 Year Ago For Year Ended December 31 Sales Cost of goods sold Other operating expenses $ 797,424 Interest expense Income tax expense Total costs and expenses Net income Earnings per share Additional information about the company follows. Common stock market price, December 31, Current Year Common stock market price, December 31, 1 Year Ago Annual cash dividends per share in Current Year 757,553 $ 39,871 $2.45 2 Years Ago $ 409,024 159,205 14,473 9,439 $ 32.00 30.00 0.28 $ 43,194 57,592 63, 194 4,751 267,569 $ 436,300 $ 57,016 94,494 163,500 121,290 $ 436,300 $ 629,267 592, 141 $ 37, 126 $2.28

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 40E: Cuneo Companys income statements for the last 3 years are as follows: Refer to the information for...
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Simon Company's year-end balance sheets follow. 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 Interest expense Income tax expense Total costs and expenses Net income Current Year $ 35,467 102,794 127,925 11,888 335,329 $ 613,403 For both the current year and one year ago, compute the following ratios: ه له مه له :. .: له 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 $ 149,683 117,626 162,500 183,594 $ 613,403 $ 486,429 247,201 Current Year 13,556 10,367 Vanu $ 797,424 Earnings per share Additional information about the company follows. Common stock market price, December 31, Current Year Common stock market price, December 31, 1 Year Ago Annual cash dividends per share in Current Year Ammin1 1 Year Ago 2 Years Ago $ 42,304 74,031 95,871 11,327 305,263 $ 528,796 757, 553 $ 39,871 $ 2.45 $ 88,473 125,272 162,500 152, 551 $ 528,796 $ 409,024 159, 205 14,473 9,439 $ 43,194 57,592 $ 32.00 30.00 0.28 11 63, 194 4,751 267,569 $ 436,300 1 Year Ago $ 57,016 94,494 163,500 121,290 $ 436,300 $ 629,267 592,141 $ 37, 126 $ 2.28
Transcribed Image Text:Simon Company's year-end balance sheets follow. 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 Interest expense Income tax expense Total costs and expenses Net income Current Year $ 35,467 102,794 127,925 11,888 335,329 $ 613,403 For both the current year and one year ago, compute the following ratios: ه له مه له :. .: له 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 $ 149,683 117,626 162,500 183,594 $ 613,403 $ 486,429 247,201 Current Year 13,556 10,367 Vanu $ 797,424 Earnings per share Additional information about the company follows. Common stock market price, December 31, Current Year Common stock market price, December 31, 1 Year Ago Annual cash dividends per share in Current Year Ammin1 1 Year Ago 2 Years Ago $ 42,304 74,031 95,871 11,327 305,263 $ 528,796 757, 553 $ 39,871 $ 2.45 $ 88,473 125,272 162,500 152, 551 $ 528,796 $ 409,024 159, 205 14,473 9,439 $ 43,194 57,592 $ 32.00 30.00 0.28 11 63, 194 4,751 267,569 $ 436,300 1 Year Ago $ 57,016 94,494 163,500 121,290 $ 436,300 $ 629,267 592,141 $ 37, 126 $ 2.28
Additional information about the company follows. Common stock market price, December 31, Current Year Common stock market price, December 31, 1 Year Ago Annual cash dividends per share in Current Year Annual cash dividends per share 1 Year Ago For both the current year and one year ago, compute the following ratios: 1. Return on equity. 2. Dividend yield. 3a. Price-earnings ratio on December 31. 3b. Assuming Simon's competitor has a price-earnings ratio of 6, which company has higher market expectations for future growth? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3A Current Year: 1 Year Ago Required 3B Compute the dividend yield for each year. (Round your answers to 2 decimal places.) Numerator: $32.00 30.00 0.28 0.14 Dividend Yield 1 1 1 Required 1 Denominator: Required 3A > = = = = Dividend Yield Dividend yield 0 % 0%
Transcribed Image Text:Additional information about the company follows. Common stock market price, December 31, Current Year Common stock market price, December 31, 1 Year Ago Annual cash dividends per share in Current Year Annual cash dividends per share 1 Year Ago For both the current year and one year ago, compute the following ratios: 1. Return on equity. 2. Dividend yield. 3a. Price-earnings ratio on December 31. 3b. Assuming Simon's competitor has a price-earnings ratio of 6, which company has higher market expectations for future growth? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3A Current Year: 1 Year Ago Required 3B Compute the dividend yield for each year. (Round your answers to 2 decimal places.) Numerator: $32.00 30.00 0.28 0.14 Dividend Yield 1 1 1 Required 1 Denominator: Required 3A > = = = = Dividend Yield Dividend yield 0 % 0%
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