Question

Simon Company’s year-end balance sheets follow.

At December 31	Current Yr					1 Yr Ago			2 Yrs Ago
Assets
Cash		$	31,200			$	36,000		$	37,800
Accounts receivable, net			89,800				61,500			49,000
Merchandise inventory			110,000				83,800			54,000
Prepaid expenses			10,700				9,300			4,300
Plant assets, net			280,000				258,000			230,000
Total assets		$	521,700			$	448,600		$	375,100
Liabilities and Equity
Accounts payable		$	129,200			$	75,750		$	51,200
Long-term notes payable secured by mortgages on plant assets			97,500				101,750			84,000
Common stock, $10 par value			160,500				160,500			160,500
Retained earnings			134,500				110,600			79,400
Total liabilities and equity		$	521,700			$	448,600		$	375,100

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				$	715,000					$	560,000
Cost of goods sold	$	414,700					$	352,800
Other operating expenses		221,650						134,400
Interest expense		12,400						13,400
Income tax expense		9,400						8,700
Total costs and expenses					658,150						509,300
Net income				$	56,850					$	50,700
Earnings per share				$	3.54					$	3.16

Profit Margin Ratio
	Choose Numerator:	/	Choose Denominator:	=	Profit Margin Ratio
		/		=	Profit margin ratio
Current Year:		/		=		%
1 Year Ago:		/		=		%

Total Asset Turnover
	Choose Numerator:	/	Choose Denominator:	=	Total Asset Turnover
		/		=	Total asset turnover
Current Year:		/		=		times
1 Year Ago:		/		=		times

Return On Total Assets
	Choose Numerator:	/	Choose Denominator:	=	Return On Total Assets
		/		=	Return on total assets
Current Year:		/		=		%
1 Year Ago:		/		=		%

Answer 1