BMAL530 Assignment: Homework 3 FALL 2014
1.
award:
2.18 out of
2.72 points
|
|
2015 |
2014 |
2013 |
2012 |
2011 |
|
Sales |
$ 561,561 |
$ 369,448 |
$ 300,364 |
$ 213,782 |
$ 153,800 |
|
Cost of goods sold |
288,846 |
189,968 |
156,536 |
110,229 |
78,438 |
|
Accounts receivable |
27,180 |
21,539 |
20,515 |
12,463 |
10,520 |
|
|
|
Compute trend percents for the above accounts, using 2011 as the base year. |
|
|
Explanation:
No further explanation details are available for this problem.
2.
award:
2.72 out of
2.72 points
|
Common-size and trend percents for Rustynail Company's sales, cost of goods sold, and expenses follow. |
|
|
Common-Size Percents |
|
Trend Percents |
||||||||||
|
|
2014 |
2013 |
2012 |
|
2014 |
2013 |
2012 |
||||||
|
Sales |
100.0 |
% |
100.0 |
% |
100.0 |
% |
|
104.6 |
% |
103.4 |
% |
100.0 |
% |
|
Cost of goods sold |
63.5 |
|
61.3 |
|
56.9 |
|
|
116.7 |
|
111.4 |
|
100.0 |
|
|
Total expenses |
14.3 |
|
13.8 |
|
14.1 |
|
|
106.2 |
|
101.2 |
|
100.0 |
|
|
|
|
Determine the net income for the following years. (Enter all amounts as positive values.) |
3.
award:
2.72 out of
2.72 points
|
Simon Company's year-end balance sheets follow. |
|
|
At December 31 |
|
|
2014 |
|
|
2013 |
|
|
2012 |
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
Cash |
|
$ |
30,861 |
|
$ |
35,709 |
|
$ |
37,576 |
|
|
Accounts receivable, net |
|
|
91,250 |
|
|
64,403 |
|
|
50,102 |
|
|
Merchandise inventory |
|
|
115,866 |
|
|
85,947 |
|
|
53,897 |
|
|
Prepaid expenses |
|
|
10,039 |
|
|
9,374 |
|
|
4,092 |
|
|
Plant assets, net |
|
|
280,329 |
|
|
260,037 |
|
|
230,133 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
528,345 |
|
$ |
455,470 |
|
$ |
375,800 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Equity |
|
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
131,558 |
|
$ |
74,665 |
|
$ |
50,598 |
|
|
Long-term
notes payable secured by |
|
|
98,336 |
|
|
106,853 |
|
|
83,052 |
|
|
Common stock, $10 par value |
|
|
163,500 |
|
|
163,500 |
|
|
163,500 |
|
|
Retained earnings |
|
|
134,951 |
|
|
110,452 |
|
|
78,650 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity |
|
$ |
528,345 |
|
$ |
455,470 |
|
$ |
375,800 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Express the balance sheets in common-size percents. (Do not round intermediate calculations and round your final answers to 1 decimal place.) |
4.
award:
1.56 out of
2.72 points
|
Simon Company’s year-end balance sheets follow. |
|
|
At December 31 |
|
|
2014 |
|
|
2013 |
|
|
2012 |
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
Cash |
|
$ |
34,425 |
|
$ |
40,240 |
|
$ |
41,497 |
|
|
Accounts receivable, net |
|
|
96,782 |
|
|
69,716 |
|
|
55,889 |
|
|
Merchandise inventory |
|
|
126,702 |
|
|
91,194 |
|
|
61,325 |
|
|
Prepaid expenses |
|
|
10,864 |
|
|
10,246 |
|
|
4,751 |
|
|
Plant assets, net |
|
|
314,706 |
|
|
291,603 |
|
|
259,938 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
583,479 |
|
$ |
502,999 |
|
$ |
423,400 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Equity |
|
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
143,833 |
|
$ |
85,857 |
|
$ |
54,771 |
|
|
Long-term
notes payable secured by |
|
|
111,888 |
|
|
113,376 |
|
|
92,636 |
|
|
Common stock, $10 par value |
|
|
162,500 |
|
|
162,500 |
|
|
162,500 |
|
|
Retained earnings |
|
|
165,258 |
|
|
141,266 |
|
|
113,493 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity |
|
$ |
583,479 |
|
$ |
502,999 |
|
$ |
423,400 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Compute the current ratio for the year ended 2014, 2013, and 2012. |
|
|
|
5 6 AND 7
[The following information applies to
the questions displayed below.]
|
Simon Company’s year-end balance sheets follow. |
|
|
At December 31 |
|
|
2014 |
|
|
2013 |
|
|
2012 |
|
Assets |
|
|||||||||
|
|
Cash |
|
$ |
33,925 |
|
$ |
39,250 |
|
$ |
42,146 |
|
|
Accounts receivable, net |
|
|
102,337 |
|
|
70,812 |
|
|
54,525 |
|
|
Merchandise inventory |
|
|
123,624 |
|
|
96,380 |
|
|
61,050 |
|
|
Prepaid expenses |
|
|
11,036 |
|
|
10,622 |
|
|
4,590 |
|
|
Plant assets, net |
|
|
315,806 |
|
|
288,736 |
|
|
259,189 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
586,728 |
|
$ |
505,800 |
|
$ |
421,500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Equity |
|
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
143,173 |
|
$ |
87,190 |
|
$ |
55,082 |
|
|
Long-term
notes payable secured by |
|
|
110,305 |
|
|
118,661 |
|
|
93,152 |
|
|
Common stock, $10 par value |
|
|
162,500 |
|
|
162,500 |
|
|
162,500 |
|
|
Retained earnings |
|
|
170,750 |
|
|
137,449 |
|
|
110,766 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity |
|
$ |
586,728 |
|
$ |
505,800 |
|
$ |
421,500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The company’s income statements for the years ended December 31, 2014 and 2013, follow. |
|
For Year Ended December 31 |
2014 |
2013 |
|||||||||
|
Sales |
|
|
|
$ |
762,746 |
|
|
|
|
$ |
601,902 |
|
Cost of goods sold |
$ |
465,275 |
|
|
$ |
391,236 |
|
|
|||
|
Other operating expense |
236,451 |
|
|
152,281 |
|
|
|||||
|
Interest expense |
|
12,967 |
|
|
|
|
|
13,844 |
|
|
|
|
Income taxes |
|
9,916 |
|
|
|
|
|
9,029 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total costs and expense |
|
|
|
|
724,609 |
|
|
|
|
|
566,390 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
|
$ |
38,137 |
|
|
|
|
$ |
35,512 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share |
|
|
|
$ |
2.35 |
|
|
|
|
$ |
2.19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculate the company’s long-term risk and capital structure positions at the end of 2014 and 2013 by computing the following ratios. |
8 9 AND 10
[The following information applies to the questions displayed below.]
|
Simon Company’s year-end balance sheets follow. |
|
|
At December 31 |
|
|
2014 |
|
|
2013 |
|
|
2012 |
|
Assets |
|
|||||||||
|
|
Cash |
|
$ |
31,400 |
|
$ |
36,250 |
|
$ |
37,000 |
|
|
Accounts receivable, net |
|
|
89,500 |
|
|
62,500 |
|
|
49,000 |
|
|
Merchandise inventory |
|
|
112,500 |
|
|
81,000 |
|
|
53,000 |
|
|
Prepaid expenses |
|
|
10,500 |
|
|
9,325 |
|
|
5,300 |
|
|
Plant assets, net |
|
|
281,000 |
|
|
251,500 |
|
|
232,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
524,900 |
|
$ |
440,575 |
|
$ |
376,300 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Equity |
|
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
129,200 |
|
$ |
74,000 |
|
$ |
51,200 |
|
|
Long-term
notes payable secured by |
|
|
95,500 |
|
|
99,750 |
|
|
82,000 |
|
|
Common stock, $10 par value |
|
|
161,500 |
|
|
161,500 |
|
|
161,500 |
|
|
Retained earnings |
|
|
138,700 |
|
|
105,325 |
|
|
81,600 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity |
|
$ |
524,900 |
|
$ |
440,575 |
|
$ |
376,300 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The company’s income statements for the years ended December 31, 2014 and 2013, follow. |
|
For Year Ended December 31 |
2014 |
2013 |
|||||||||
|
Sales |
|
|
|
$ |
665,000 |
|
|
|
|
$ |
600,000 |
|
Cost of goods sold |
$ |
412,300 |
|
|
$ |
384,000 |
|
|
|||
|
Other operating expense |
199,500 |
|
|
144,000 |
|
|
|||||
|
Interest expense |
|
11,700 |
|
|
|
|
|
12,700 |
|
|
|
|
Income taxes |
|
9,550 |
|
|
|
|
|
8,575 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total costs and expense |
|
|
|
|
633,050 |
|
|
|
|
|
549,275 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
|
$ |
31,950 |
|
|
|
|
$ |
50,725 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share |
|
|
|
$ |
1.98 |
|
|
|
|
$ |
3.14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Evaluate the company's efficiency and profitability by computing the following for 2014 and 2013. |
11.
award:
0 out of
2.80 points
|
Simon Company’s year-end balance sheets follow. |
|
|
At December 31 |
|
|
2014 |
|
|
2013 |
|
|
2012 |
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
Cash |
|
$ |
24,964 |
|
$ |
29,470 |
|
$ |
29,494 |
|
|
Accounts receivable, net |
|
|
72,354 |
|
|
51,067 |
|
|
40,128 |
|
|
Merchandise inventory |
|
|
90,071 |
|
|
67,481 |
|
|
41,873 |
|
|
Prepaid expenses |
|
|
7,801 |
|
|
7,433 |
|
|
3,444 |
|
|
Plant assets, net |
|
|
223,746 |
|
|
205,701 |
|
|
189,061 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
418,936 |
|
$ |
361,152 |
|
$ |
304,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Equity |
|
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
104,315 |
|
$ |
62,866 |
|
$ |
40,529 |
|
|
Long-term
notes payable secured by |
|
|
80,335 |
|
|
81,404 |
|
|
66,512 |
|
|
Common stock, $10 par value |
|
|
162,500 |
|
|
162,500 |
|
|
162,500 |
|
|
Retained earnings |
|
|
71,786 |
|
|
54,382 |
|
|
34,459 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity |
|
$ |
418,936 |
|
$ |
361,152 |
|
$ |
304,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The company’s income statements for the years ended December 31, 2014 and 2013, follow. |
|
For Year Ended December 31 |
2014 |
2013 |
|||||||||
|
Sales |
|
|
|
$ |
544,617 |
|
|
|
|
$ |
429,771 |
|
Cost of goods sold |
$ |
332,216 |
|
|
$ |
279,351 |
|
|
|
||
|
Other operating expenses |
168,831 |
|
|
108,732 |
|
|
|||||
|
Interest expense |
|
9,258 |
|
|
|
|
|
9,885 |
|
|
|
|
Income taxes |
|
7,080 |
|
|
|
|
|
6,447 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total costs and expenses |
|
|
|
|
517,385 |
|
|
|
|
|
404,415 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
|
$ |
27,232 |
|
|
|
|
$ |
25,356 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share |
|
|
|
$ |
1.68 |
|
|
|
|
$ |
1.56 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional information about the company follows. |
|
|
|
|
Common stock market price, December 31, 2014 |
$30.00 |
|
Common stock market price, December 31, 2013 |
28.00 |
|
Annual cash dividends per share in 2014 |
0.22 |
|
Annual cash dividends per share in 2013 |
0.11 |
|
|
|
To help evaluate the company's profitability, compute the following ratios for 2014 and 2013: |
-
Rating:
/5
Solution: BMAL530 Assignment: Homework 3 FALL 2014