Simons Company Sells Plastic Ware

question 178

Essay

Simons Company sells plastic ware. The following information summarizes Simons' operating activities for 2015: Prepare an income statement for Simons Company, a merchandiser, for the year ended December 31, 2015 using the format below:

Analyze the appropriateness of using the S&P 500 as a proxy for the global market portfolio.

Understand the role of top executives in facilitating cooperation within an organization.

Identify the importance of position power for controlling disruptive behaviors within an organization.

Recognize the substantial progress made in understanding effective leadership in recent decades.

---

Definitions:

Dividends

Payments made by a corporation to its shareholders, typically from earnings, as a distribution of profits.

Dividends

Payments made by a corporation to its shareholder members, usually derived from the company's earnings.

Consolidated Statement of Retained Earnings

A financial statement that shows the changes in a corporation's retained earnings over a specific period, combining the retained earnings of the parent company with those of its subsidiaries.

FVE Method

Refers to the Fair Value Evaluation method, a technique for assessing an asset's worth at its current market value.