[The following information applies to the questions displayed below.] 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 Current Year Interest expense Income tax expense Total costs and expenses Net income Earnings per share $ 31,800 88,800 111,000 10,700 276,000 $518,300 $ 128,400 96,000 163,000 130,900 1 Year Ago Current Year $ 35,500 63,000 80,000 9,450 257,500 $ 445,450 $ 75,500 $ 50,000 98,000 82,200 163,000 163,000 108,950 80,300 $518,300 $ 445,450 $ 375,500 $ 465,000 240,250 11,400 9,350 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 $ 775,000 2 Years Ago 726,000 $ 49,000 $ 3.01 $ 37,200 49,000 55,000 5,300 229,000 $ 375,500 For both the Current Year and 1 Year Ago, compute the following ratins 1 Year Ago $ 396,800 148,800 13,100 8,725 $ 620,000 567,425 $ 52,575 $ 3.23
[The following information applies to the questions displayed below.] 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 Current Year Interest expense Income tax expense Total costs and expenses Net income Earnings per share $ 31,800 88,800 111,000 10,700 276,000 $518,300 $ 128,400 96,000 163,000 130,900 1 Year Ago Current Year $ 35,500 63,000 80,000 9,450 257,500 $ 445,450 $ 75,500 $ 50,000 98,000 82,200 163,000 163,000 108,950 80,300 $518,300 $ 445,450 $ 375,500 $ 465,000 240,250 11,400 9,350 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 $ 775,000 2 Years Ago 726,000 $ 49,000 $ 3.01 $ 37,200 49,000 55,000 5,300 229,000 $ 375,500 For both the Current Year and 1 Year Ago, compute the following ratins 1 Year Ago $ 396,800 148,800 13,100 8,725 $ 620,000 567,425 $ 52,575 $ 3.23
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 39E: Cuneo Companys income statements for the last 3 years are as follows: Refer to the information for...
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![[The following information applies to the questions displayed below.]
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
Current Year
Interest expense
Income tax expense
Total costs and expenses
Net income
$ 31,800
88,800
111,000
10,700
276,000
$518,300
$ 128,400
$ 75,500
98,000
96,000
163,000
130,900
163,000
108,950
$ 518,300 $ 445,450
Current Year
1 Year Ago
$ 465,000
240,250
$ 35,500
63,000
80,000
9,450
257,500
$ 445,450
11,400
9,350
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
$ 775,000
726,000
$ 49,000
$ 3.01
2 Years Ago
$ 37,200
49,000
55,000
5,300
229,000
$ 375,500
Earnings per share
For both the Current Year and 1 Year Ago, compute the following ratios:
$ 50,000
82,200
163,000
80,300
$ 375,500
1 Year Ago
$ 396,800
148,800
13,100
8,725
$ 620,000
567,425
$ 52,575
$ 3.23](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F603fb863-551d-4e2c-baf1-38f56fb13d9e%2F23ee5e2c-0d7b-468c-9304-5a7da1fa7749%2Fld9h40e_processed.jpeg&w=3840&q=75)
Transcribed Image Text:[The following information applies to the questions displayed below.]
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
Current Year
Interest expense
Income tax expense
Total costs and expenses
Net income
$ 31,800
88,800
111,000
10,700
276,000
$518,300
$ 128,400
$ 75,500
98,000
96,000
163,000
130,900
163,000
108,950
$ 518,300 $ 445,450
Current Year
1 Year Ago
$ 465,000
240,250
$ 35,500
63,000
80,000
9,450
257,500
$ 445,450
11,400
9,350
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
$ 775,000
726,000
$ 49,000
$ 3.01
2 Years Ago
$ 37,200
49,000
55,000
5,300
229,000
$ 375,500
Earnings per share
For both the Current Year and 1 Year Ago, compute the following ratios:
$ 50,000
82,200
163,000
80,300
$ 375,500
1 Year Ago
$ 396,800
148,800
13,100
8,725
$ 620,000
567,425
$ 52,575
$ 3.23
Transcribed Image Text:Complete this question by entering your answers in the tabs below.
Required 1A Required 1B
Compute profit margin ratio for the current year and one year ago.
Profit Margin Ratio
Current Year:
1 Year Ago:
Numerator:
1
1
1
Denominator:
=
=
Profit margin ratio
%
%
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