(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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
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
||](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb2cee1c1-b23f-4dcf-8ec3-1abf9f64204f%2F15adc7f2-8f11-4cd5-8a0f-0931748c8bbc%2Fxtldul_processed.jpeg&w=3840&q=75)
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:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb2cee1c1-b23f-4dcf-8ec3-1abf9f64204f%2F15adc7f2-8f11-4cd5-8a0f-0931748c8bbc%2F6garhip_processed.jpeg&w=3840&q=75)
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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