Simple Simon's Balance Sheet and Income Statement Accounts Follow What Is Simple Simon's Profit Margin Ratio for 2011?
A)65

question 14

Multiple Choice

Simple Simon's balance sheet and income statement accounts follow:
$\begin{array}{lrrr}\text { At December } 31&2011&2010&2009\\\text { Assets }\\\text { Cash } & \$ 30,872 & \$ 36,086 & \$ 37,974 \\\hline \text { Accounts receivable, net } & 89,476 & 63,151 & 50,632 \\\hline \text { Merchandise inventory } & 112,499 & 83,450 & 54,467 \\\hline \text { Prepaid expenses } & 9,942 & 9,473 & 4,219 \\\hline \text { Plant assets, net } & 291,143 & 268,126 & 244,108 \\\text { Total assets } & \$ 533,932 & \$ 460,286 & \$ 391,400\\\text { Liabilities and Equity }\\\text { Accounts payable } & \$ 130,290 & \$ 76,233 & \$ 50,632 \\\hline \text { Long-term notes payable secured by } & 98,372 & 103,748 & 107,769 \\\text { mortgages on plant assets } & 142,500 & 132,500 & 102,500 \\\hline \text { Common stock, } \$ 10 \text { par value } & 182,770 & 147,805 & 130,499\\\text { Total liabilities and equity }&\$533.932&\$460,286&\$391,400\end{array}$

What is Simple Simon's profit margin ratio for 2011?

• A)65%
• B)12%
• C)3.7%
• D)5.9%
• E)5.0%

---

Definitions:

Notre Dame Du Haut

A modern chapel in Ronchamp, France, designed by Le Corbusier, showcasing a departure from traditional architectural forms.

Le Corbusier

A pioneering Swiss-French architect, designer, and urban planner, known for his contributions to modern architecture and the International Style.

Praying Hands

An artwork by Albrecht Dürer, depicting two hands in prayer, widely recognized as a symbol of devotion.

Philip Johnson

An influential American architect, known for his modernist and postmodernist works, including the Glass House in New Canaan, Connecticut.