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Compute debt and equity ratio for the current year and one year ago. (2) Compute debt-to-equity ratio for the current year and one year ago. (3)Compute times interest eamed for the current year and one year ago.

Compute debt and equity ratio for the current year and one year ago. (2) Compute debt-to-equity ratio for the current year and one year ago. (3)Compute times interest eamed for the current year and one year ago.

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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(1) Compute debt and equity ratio for the current year and one year ago.

(2) Compute debt-to-equity ratio for the current year and one year ago.

(3)Compute times interest eamed for the current year and one year ago.

 

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Required information Exercise 13-10 (Algo) Analyzing risk and capital structure LO P3 [Alternate Version] [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. 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 $ 27,413 81,908 102,984 8,919 257,772 $ 478,996 Interest expense Income tax expense Total costs and expenses Net income Earnings per share $ 119,270 91,852 162,500 105,374 $ 478,996 Current Year 1 Year Ago $ 33,034 57,232 75,628 8,671 238,363 $ 412,928 $ 379,844 193,035 10,586 8,095 $ 67,691 95,923 162,500 86,814 $ 412,928 The company's income statements for the current year and one year ago, follow. For Year Ended December 31 Sales Cost of goods sold Other operating expenses $622,695 2 Years Ago $ 33,729 44,523 48,379 3,710 210,359 $ 340,700 591,560 $ 31,135 $ 1.92 $ 45,422 74,542 162,500 58,236 $ 340,700 1 Year Ago $319,400 124,320 11,302 7,371 $ 491,384 462,393 $ 28,991 $ 1.78
Transcribed Image Text:Required information Exercise 13-10 (Algo) Analyzing risk and capital structure LO P3 [Alternate Version] [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. 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 $ 27,413 81,908 102,984 8,919 257,772 $ 478,996 Interest expense Income tax expense Total costs and expenses Net income Earnings per share $ 119,270 91,852 162,500 105,374 $ 478,996 Current Year 1 Year Ago $ 33,034 57,232 75,628 8,671 238,363 $ 412,928 $ 379,844 193,035 10,586 8,095 $ 67,691 95,923 162,500 86,814 $ 412,928 The company's income statements for the current year and one year ago, follow. For Year Ended December 31 Sales Cost of goods sold Other operating expenses $622,695 2 Years Ago $ 33,729 44,523 48,379 3,710 210,359 $ 340,700 591,560 $ 31,135 $ 1.92 $ 45,422 74,542 162,500 58,236 $ 340,700 1 Year Ago $319,400 124,320 11,302 7,371 $ 491,384 462,393 $ 28,991 $ 1.78
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