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 RatioChoose Numerator:Choose Denominator:= Debt-To-Equity RatioDebt-to-equity ratioCurrent Year:to 11 Year Ago:to 1|| Required informationExercise 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 31Current Yr1 Yr Ago 2 Yrs AgoAssets$ 31,79086,769111,34510,138283,072$523,114$ 37,159 $ 36,08863,13481,7599,375259,533$ 450,960 $ 375,800CashAccounts receivable, netMerchandise inventoryPrepaid expensesPlant assets, net49, 60653,3644,092232,650Total assetsLiabilities and EquityAccounts payableLong -term notes payableCommon stock, $10 par valueRetained earnings$128,953101,296162,500130,365$523,114$ 74,688 $ 51,094104,758162,500109,014$ 450,960 $ 375,80083,052162,50079,154Total liabilities and equityThe company's income statements for the current year and one year ago, follow.1 Yr Ago$ 536,642For Year Ended December 31Current YrSales$680,048Cost of goods soldOther operating expensesInterest expense$414,829210,81511,5618,841$348,817135,77012,3438,050Income tax expenseTotal costs and expenses504,980646,046$ 34,002$ 31,662Net incomeEarnings per share$2.09$1.95For both the current year and one year ago, compute the following ratios:

Debt to Equity Ratio = Total Debt / Total Shareholders Equity Total Debt = Short Term Debt + Long…

Answered: (2) Debt-to-equity ratio.…

(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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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
||

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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