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 Earnings per share $ 26,053 77,051 95,908 8,732 242,846 $ 450,590 $ 113,319. 87, 252 162,500 87,519 $ 450, 590 Current Year 1 Year Ago 2 Years Ago $31, 386 54,925 69,706 7,994 224, 429 $388,440 $ 357, 318 181, 588 9,958 7,615 $ 66, 303 89, 341 162,500 70, 296 $ 388,440 The company's income statements for the current year and one year ago, follow. 1 Year Ago For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income $ 585, 767 $ 31,085 43, 156 556, 479 $ 29, 288 $ 1.80 46,425 3,596 199, 438 $323, 700 $ 42,728 70, 822 162,500 47,650 $ 323, 700 $ 300, 459 116, 948 10, 632 6,934 $ 462,244 434,973 $ 27,271 $ 1.68

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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
Cost of goods sold
Other operating expenses
Current Year
$ 26,053
77,051
95, 908
8, 732
242,846
$ 450, 590
Interest expense
Income tax expense
Total costs and expenses
Net income
Earnings per share
1 Year Ago
Current Year
$ 31, 386
54, 925
69, 706
$ 66,303
$ 113, 319
87, 252
162, 500
87, 519
89, 341
162,500
70, 296
$ 450, 590 $ 388, 440
$ 357, 318
181, 588
9,958
7,615
7,994
224, 429
388, 440
The company's income statements for the current year and one year ago, follow.
1 Year Ago
For Year Ended December 31
Sales
$ 585, 767
2 Years Ago
556, 479
S 29, 288
$ 1.80
$31, 085
43, 156
46,425
3,596
199, 438
$ 323, 700
$ 42,728
70, 822
162,500
47,650
$ 323, 700
$ 300, 459
116, 948
10, 632
6,934
$ 462,244
434,973
$ 27,271
$ 1.68
Transcribed Image Text: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 Cost of goods sold Other operating expenses Current Year $ 26,053 77,051 95, 908 8, 732 242,846 $ 450, 590 Interest expense Income tax expense Total costs and expenses Net income Earnings per share 1 Year Ago Current Year $ 31, 386 54, 925 69, 706 $ 66,303 $ 113, 319 87, 252 162, 500 87, 519 89, 341 162,500 70, 296 $ 450, 590 $ 388, 440 $ 357, 318 181, 588 9,958 7,615 7,994 224, 429 388, 440 The company's income statements for the current year and one year ago, follow. 1 Year Ago For Year Ended December 31 Sales $ 585, 767 2 Years Ago 556, 479 S 29, 288 $ 1.80 $31, 085 43, 156 46,425 3,596 199, 438 $ 323, 700 $ 42,728 70, 822 162,500 47,650 $ 323, 700 $ 300, 459 116, 948 10, 632 6,934 $ 462,244 434,973 $ 27,271 $ 1.68
(1) Compute debt and equity ratio for the current year and one year ago.
Current Year:
1 Year Ago:
Current Year:
1 Year Ago:
Numerator:
Numerator:
Debt Ratio
1
1
1
1
Equity Ratio
1
1
1
1
Denominator:
Denominator:
B
www
=
Debt Ratio
Debt ratio
%
%
Equity Ratio
Equity ratio
%
%
Transcribed Image Text:(1) Compute debt and equity ratio for the current year and one year ago. Current Year: 1 Year Ago: Current Year: 1 Year Ago: Numerator: Numerator: Debt Ratio 1 1 1 1 Equity Ratio 1 1 1 1 Denominator: Denominator: B www = Debt Ratio Debt ratio % % Equity Ratio Equity ratio % %
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