Exercise 13-10 (Algo) Part 3 [Alternate Version] (3-a) Compute times interest earned for the current year and one year ago. (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 Compute times interest earned for the current year and one year ago. Times Interest Earned Current Year: 1 Year Ago: Numerator: Income before interest expense and income tax expense < Required 3A 1 1 1 1 Denominator: Interest expense Required 3B > = = Times interest earned 0 times 0 times
Exercise 13-10 (Algo) Part 3 [Alternate Version] (3-a) Compute times interest earned for the current year and one year ago. (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 Compute times interest earned for the current year and one year ago. Times Interest Earned Current Year: 1 Year Ago: Numerator: Income before interest expense and income tax expense < Required 3A 1 1 1 1 Denominator: Interest expense Required 3B > = = Times interest earned 0 times 0 times
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 39E: Cuneo Companys income statements for the last 3 years are as follows: Refer to the information for...
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![[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
Interest expense
Income tax expense
Total costs and expenses
Net income
Current Year
Earnings per share
$ 28,742
85,004
104,739
9,256
269,358
$ 497,099
$ 126,253
92,520
162,500
115,826
$ 497,099
Current Year
$ 394,200
200,331
10,986
8,401
1 Year Ago
Exercise 13-10 (Algo) Part 3 [Alternate Version]
$ 33,597
59,995
81,657
9,179
244,106
$ 428,534
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
$ 73,871
99,548
162,500
92,615
$ 428,534
$ 646,229
2 Years Ago
613,918
$ 32,311
$ 1.99
$ 35,354
46,658
50,710
4,089
227,589
$364,400
$ 47,620
80,532
162,500
73,748
$364,400
1 Year Ago
$ 331,471
129,019
11,729
7,649
$ 509,955
479,868
$ 30,087
$ 1.85](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F603fb863-551d-4e2c-baf1-38f56fb13d9e%2F7f40a474-4509-476b-b1e3-0667483cfdde%2F9n3esqo_processed.jpeg&w=3840&q=75)
Transcribed Image Text:[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
Interest expense
Income tax expense
Total costs and expenses
Net income
Current Year
Earnings per share
$ 28,742
85,004
104,739
9,256
269,358
$ 497,099
$ 126,253
92,520
162,500
115,826
$ 497,099
Current Year
$ 394,200
200,331
10,986
8,401
1 Year Ago
Exercise 13-10 (Algo) Part 3 [Alternate Version]
$ 33,597
59,995
81,657
9,179
244,106
$ 428,534
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
$ 73,871
99,548
162,500
92,615
$ 428,534
$ 646,229
2 Years Ago
613,918
$ 32,311
$ 1.99
$ 35,354
46,658
50,710
4,089
227,589
$364,400
$ 47,620
80,532
162,500
73,748
$364,400
1 Year Ago
$ 331,471
129,019
11,729
7,649
$ 509,955
479,868
$ 30,087
$ 1.85
![Exercise 13-10 (Algo) Part 3 [Alternate Version]
(3-a) Compute times interest earned for the current year and one year ago.
(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
Compute times interest earned for the current year and one year ago.
Current Year:
1 Year Ago:
Times Interest Earned
Numerator:
Income before interest expense and income tax expense
< Required 3A
1
1
1
1
Denominator:
Interest expense
Required 3B >
=
=
Times interest earned
0 times
0 times](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F603fb863-551d-4e2c-baf1-38f56fb13d9e%2F7f40a474-4509-476b-b1e3-0667483cfdde%2Fzx825fh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 13-10 (Algo) Part 3 [Alternate Version]
(3-a) Compute times interest earned for the current year and one year ago.
(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
Compute times interest earned for the current year and one year ago.
Current Year:
1 Year Ago:
Times Interest Earned
Numerator:
Income before interest expense and income tax expense
< Required 3A
1
1
1
1
Denominator:
Interest expense
Required 3B >
=
=
Times interest earned
0 times
0 times
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