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(2-a) Compute debt-to-equity ratio for the current year and one year ago. (2-b) Based on debt-to-equity ratio, does the company have more or less debt in the current year versus one year ago? Complete this question by entering your answers in the tabs below. Required 2A Required 28 Compute debt-to-equity ratio for the current year and one year ago. Debt-To-Equity Ratio 1 Current Year: 1 Year Ago: Numerator: 1 Denominator: Required 2A Debt-To-Equity Ratio. Debt-to-equity ratio 0 to 1 0 to 1 Required 28 >

(2-a) Compute debt-to-equity ratio for the current year and one year ago. (2-b) Based on debt-to-equity ratio, does the company have more or less debt in the current year versus one year ago? Complete this question by entering your answers in the tabs below. Required 2A Required 28 Compute debt-to-equity ratio for the current year and one year ago. Debt-To-Equity Ratio 1 Current Year: 1 Year Ago: Numerator: 1 Denominator: Required 2A Debt-To-Equity Ratio. Debt-to-equity ratio 0 to 1 0 to 1 Required 28 >

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity Current Year Interest expense Income tax expense Total costs and expenses Net income. Earnings per share $28,192 85,876 103,780 9,357 260,369 $ 487,574 Current Year 1 Year Ago $ 122,620 89,831 162,500 112,623 $ 487,574 $ 420,322 $ 386,646 196,492 $ 33,626 60,022 75,427 8,827 10,775 8,240 242,420 $ 420,322 $ 72,455 96,674 162,500 88,693 The company's income statements for the current year and one year ago, follow. For Year Ended December 31 Sales Cost of goods sold Other operating expenses $633,846 2 Years Ago $ 33,990 44,862 50,723 3,853. 213,372 $ 346,800 602,153 $31,693 $1.95 $ 46,235 77,409 162,500 60, 656 $ 346,800 1 Year Ago $325,119 126,546 11,504 7,503 $ 500,183 470,672 $29,511 $ 1.82
Transcribed Image Text: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 Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity Current Year Interest expense Income tax expense Total costs and expenses Net income. Earnings per share $28,192 85,876 103,780 9,357 260,369 $ 487,574 Current Year 1 Year Ago $ 122,620 89,831 162,500 112,623 $ 487,574 $ 420,322 $ 386,646 196,492 $ 33,626 60,022 75,427 8,827 10,775 8,240 242,420 $ 420,322 $ 72,455 96,674 162,500 88,693 The company's income statements for the current year and one year ago, follow. For Year Ended December 31 Sales Cost of goods sold Other operating expenses $633,846 2 Years Ago $ 33,990 44,862 50,723 3,853. 213,372 $ 346,800 602,153 $31,693 $1.95 $ 46,235 77,409 162,500 60, 656 $ 346,800 1 Year Ago $325,119 126,546 11,504 7,503 $ 500,183 470,672 $29,511 $ 1.82
(2-a) Compute debt-to-equity ratio for the current year and one year ago. (2-b) Based on debt-to-equity ratio, does the company have more or less debt in the current year versus one year ago? Complete this question by entering your answers in the tabs below. Required 2A Required 28 Compute debt-to-equity ratio for the current year and one year ago. Debt-To-Equity Ratio 1 Current Year: 1 Year Ago: Numerator: 1 Denominator: Required 2A Debt-To-Equity Ratio. Debt-to-equity ratio 0 to 1 0 to 1 Required 28 >
Transcribed Image Text:(2-a) Compute debt-to-equity ratio for the current year and one year ago. (2-b) Based on debt-to-equity ratio, does the company have more or less debt in the current year versus one year ago? Complete this question by entering your answers in the tabs below. Required 2A Required 28 Compute debt-to-equity ratio for the current year and one year ago. Debt-To-Equity Ratio 1 Current Year: 1 Year Ago: Numerator: 1 Denominator: Required 2A Debt-To-Equity Ratio. Debt-to-equity ratio 0 to 1 0 to 1 Required 28 >
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