Required information [The following information applies to the questions display

Question

Required information [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow 2017 2016 2015 At December 31 Assets Cash Accounts receivable, net 88,500 63,500 Merchandise inventory Prepaid expenses Plant assets, net Totalassets $ 31,600 35,500 $ 38,200 49,500 111,000 82,800 55,000 5,000 281,000 251,500 228,000 $522,750 $442,600 $375,700 10,650 9,300 Liabilities and Equity Accounts payable Long-term notes payable $129,200 $ 75,500 $ 50,600 secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity 95,000 98,500 82,400 161,000 161,000 161,000 137,550 107,600 81,700 $522,750 $442,600 $375,700 The company's income statements for the years ended December 31, 2017 and 2016, follow For Year Ended December 31 Sales 2017 2016 $675,000 $520,000 Cost of goods $405,000 other operating 202,500 $332,800 124,800 12,500 8,925 sold expenses Interest expense Income taxes9,500 Total costs and expenses Net income Earnings per share 11,600 628,600 $46,400 $ 2.88 479,025 $ 40,975 $ 2.55 Evaluate the company's efficiency and profitability by computing the following for 2017 and 2016 (2) Total asset turnover Total Asset Turnover Total Asset Turnover Total asset turnover Choose Numerator: / Choose Denominator: 201 201 times times

Explanation / Answer

Total Asset turnover = Turnover / Assets

2017 : $ 675000 / $ 522750 = 1.29 times

2016 : $ 520000 / $ 442600 = 1.17 times

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