Required information The following information applies to the questions displaye

Question

Required information 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 2017 2016 2015 $ 30,800 35,750 $ 37,400 86,100 63,000 51,000 113,000 82,000 54,000 5,500 277,000 258,500 227,000 $517,250 $448,750 $374,900 10,350 9,500 Liabilities and Equity Accounts payable Long-term notes payable secured by $128,000 74,250 $ 51,000 mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity 96,500 100,500 80,800 163,000 163,000 163,000 129,750111,000 80,100 $517,250 $448,750 $374,900 The company's income statements for the years ended December 31, 2017 and 2016, follow For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income taxes Total costs and expenses Net income 2017 2016 715, 000 610,000 $414,700 221,650 11,300 9,550 $390,400 152,500 12,600 8,700 657,200 57,800 $ 3.55 564,200 $ 45,800 $ 2.81 Earnings per share Evaluate the company's efficiency and profitability by computing the following for 2017 and 2016 (2) Total asset turnover. Total Asset Turnover Choose Numerator: Choose Denominator: Total Asset Turnover Total asset turnover 2017 times 2016 times

Explanation / Answer

2) Total assets turnover :

2017 Average total assets = (517250+448750/2) = 483000

2016 Average total assets = (448750+374900/2) = 411825

Choose numerator / Choose denominator = Total asset turnover Sales / Average total assets = Total assets turnover 2017 715000 / 483000 = 1.48 Times 2016 610000 / 411825 = 1.48 Times

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