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(2) Debt-to-equity ratio. Debt-To-Equity Ratio Choose Numerator: Choose Denominator: Debt-To-Equity Ratio Debt-to-equity ratio Current Year: to 1 %3D 1 Year Ago: to 1

(2) Debt-to-equity ratio. Debt-To-Equity Ratio Choose Numerator: Choose Denominator: Debt-To-Equity Ratio Debt-to-equity ratio Current Year: to 1 %3D 1 Year Ago: to 1

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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13 6 a and b

For both the current year and one year ago, compute the following ratios: Exercise 13-10 (Algo) Part 2 (2) Debt-to-equity ratio. Debt-To-Equity Ratio Choose Numerator: Choose Denominator: = Debt-To-Equity Ratio Debt-to-equity ratio Current Year: to 1 1 Year Ago: to 1 ||
Transcribed Image Text:For both the current year and one year ago, compute the following ratios: Exercise 13-10 (Algo) Part 2 (2) Debt-to-equity ratio. Debt-To-Equity Ratio Choose Numerator: Choose Denominator: = Debt-To-Equity Ratio Debt-to-equity ratio Current Year: to 1 1 Year Ago: to 1 ||
Required information Exercise 13-10 (Algo) Analyzing risk and capital structure LO P3 [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets $ 31,790 86,769 111,345 10,138 283,072 $523,114 $ 37,159 $ 36,088 63,134 81,759 9,375 259,533 $ 450,960 $ 375,800 Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net 49, 606 53,364 4,092 232,650 Total assets Liabilities and Equity Accounts payable Long -term notes payable Common stock, $10 par value Retained earnings $128,953 101,296 162,500 130,365 $523,114 $ 74,688 $ 51,094 104,758 162,500 109,014 $ 450,960 $ 375,800 83,052 162,500 79,154 Total liabilities and equity The company's income statements for the current year and one year ago, follow. 1 Yr Ago $ 536,642 For Year Ended December 31 Current Yr Sales $680,048 Cost of goods sold Other operating expenses Interest expense $414,829 210,815 11,561 8,841 $348,817 135,770 12,343 8,050 Income tax expense Total costs and expenses 504,980 646,046 $ 34,002 $ 31,662 Net income Earnings per share $ 2.09 $ 1.95 For both the current year and one year ago, compute the following ratios:
Transcribed Image Text:Required information Exercise 13-10 (Algo) Analyzing risk and capital structure LO P3 [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets $ 31,790 86,769 111,345 10,138 283,072 $523,114 $ 37,159 $ 36,088 63,134 81,759 9,375 259,533 $ 450,960 $ 375,800 Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net 49, 606 53,364 4,092 232,650 Total assets Liabilities and Equity Accounts payable Long -term notes payable Common stock, $10 par value Retained earnings $128,953 101,296 162,500 130,365 $523,114 $ 74,688 $ 51,094 104,758 162,500 109,014 $ 450,960 $ 375,800 83,052 162,500 79,154 Total liabilities and equity The company's income statements for the current year and one year ago, follow. 1 Yr Ago $ 536,642 For Year Ended December 31 Current Yr Sales $680,048 Cost of goods sold Other operating expenses Interest expense $414,829 210,815 11,561 8,841 $348,817 135,770 12,343 8,050 Income tax expense Total costs and expenses 504,980 646,046 $ 34,002 $ 31,662 Net income Earnings per share $ 2.09 $ 1.95 For both the current year and one year ago, compute the following ratios:
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