(3-a) Times interest earned. (3-b) Based on times interest earned, is the company more or less risky for creditors in the Current Year versus 1 Year Ago? Complete this question by entering your answers in the tabs below. Required 3A Required 3B Times interest earned. Times Interest Earned Choose Numerator: Choose Denominator: Times Interest Earned %3D Times interest earned Current Year: times %3D 1 Year Ago: times %3D Required 3A Required 3B

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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13 7 a and b

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
83,052
162, 500
79,154
$ 450,960 $ 375,800
109,014
Total liabilities and equity
The company's income statements for the current year and one year ago, follow.
For Year Ended December 31
Current Yr
1 Yr Ago
Sales
$680,048
$ 536,642
Cost of goods sold
Other operating expenses
Interest expense
Income tax expense
Total costs and expenses
$414,829
210,815
11,561
8,841
$348,817
135,770
12,343
8,050
646,046
$ 34,002
504,980
$ 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: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 83,052 162, 500 79,154 $ 450,960 $ 375,800 109,014 Total liabilities and equity The company's income statements for the current year and one year ago, follow. For Year Ended December 31 Current Yr 1 Yr Ago Sales $680,048 $ 536,642 Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses $414,829 210,815 11,561 8,841 $348,817 135,770 12,343 8,050 646,046 $ 34,002 504,980 $ 31,662 Net income Earnings per share $ 2.09 $ 1.95 For both the current year and one year ago, compute the following ratios:
(3-a) Times interest earned.
(3-b) Based on times interest earned, is the company more or less risky for creditors in the Current Year versus 1 Year Ago?
Complete this question by entering your answers in the tabs below.
Required 3A
Required 3B
Times interest earned.
Times Interest Earned
Choose Numerator:
Choose Denominator:
Times Interest Earned
%3D
Times interest earned
Current Year:
times
1 Year Ago:
times
Required 3A
Required 3B >
Transcribed Image Text:(3-a) Times interest earned. (3-b) Based on times interest earned, is the company more or less risky for creditors in the Current Year versus 1 Year Ago? Complete this question by entering your answers in the tabs below. Required 3A Required 3B Times interest earned. Times Interest Earned Choose Numerator: Choose Denominator: Times Interest Earned %3D Times interest earned Current Year: times 1 Year Ago: times Required 3A Required 3B >
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