Simon Companys yearend balance sheets follow 2017 2015 At De

Simon Company\'s year-end balance sheets follow. 2017 2015 At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets 2016 s 31,800 35,000 37,400 88,100 63, 000 50,000 112,000 81,800 53,000 4,800 279,000 252,500 232,000 10,600 9,300 521,500 $441,600 377,200 Liabilities and Equity Accounts payable Long-term notes payable secured by $128,800 75,250 51,200 mortgages on plant assets Common stock, $10 par value Retained earnings 97,000 98,750 81,200 161,500 161,500 161,500 134,200 106, 100 83 300 521,500 $441,600 377,200 Total liabilities and equity

Solution

Simon Company Profit margin ratio Choose numerator Choose denominator Profit margin ratio Net income Net sales 2017 63950 775000 8.25% 2016 66100 630000 10.49% Total asset turnover Choose numerator Choose denominator Total asset turnover Net sales Average total assets (times) 2017 775000 481550 1.61 Beginning total assets 441600 Ending total assets 521500 2016 630000 409400 1.54 Beginning total assets 377200 Ending total assets 441600 Return on Total Assets Choose numerator Choose denominator Return on Total Assets 2017 63950 481550 13.28% 2016 66100 409400 16.15%