cDezto.mheducation.com/hm.tpx?-=0.27195126686147386-1449684885668 1.00 points Ex
ID: 2494126 • Letter: C
Question
cDezto.mheducation.com/hm.tpx?-=0.27195126686147386-1449684885668 1.00 points Exercise 13-11 Profitability analysis LO P3 Simon Company's year end balance sheets follow Assets Cash Accounts receivable, net Merchandise Inventory Prepaid expenses Plant assets, net $ 31,800 $ 35,625 S 37,800 89,500 62,500 50,200 112,500 82,500 54,000 10,700 9,375 5,000 278,500 255,000 230500 Total assets $523,000 $445, 000 $377,500 Liabilities and Equity 129.900 75,250 51.250 Accounts pay able Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings 98,500 101,500 83,500 163.500 163,500 163,500 131.100 104,750 79.250 Total liabilities and equity $523,000 $445,000 $377,500 The company's income statements for the years ended December 31, 2015 and 2014, follow For Year Ended December 31 2015 2014 Sales Cost of goods sold $673 500 $532.000 Other operating expenses Intorest expense Income taxes $411.225 209 550 12.100 9.525 345,500 34 980 13,300 8.845 Total costs and expenses Net Income 642,400 $ 31.100 1.90 502 625 29.375 1.80 Eamings per share Addtional information about the company followsExplanation / Answer
Answer
Return on stockholders equity
Net income
-
Current Liabilities
Divide
Average Commonstock holdings
Retrun on Stockholders equity
2014
$29,375
0
$29,375
163,500
17.97%
2015
$ 31,100
0
$31,100
163,500
19.02%
Price-Earnings ratio
Market value per share
Divide
EPS
P/E ratio
2015
30
1.9
15.79
2014
25
1.8
13.89
Dividend Yield
Dividend per share
Divide
Market value per share
Dividend yield
2015
0.29
30
0.97%
2014
0.24
25
0.96%
Net income
-
Current Liabilities
Divide
Average Commonstock holdings
Retrun on Stockholders equity
2014
$29,375
0
$29,375
163,500
17.97%
2015
$ 31,100
0
$31,100
163,500
19.02%
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