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Required Information [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-tere notes payable Common stock, $10 par value Retained earnings Total liabilities and equity Current Year $ 31,800 89,500 112,500 10,700 278,500 $ 523,000 $ 129,900 98,500 163,500 131,100 $ 523,000 1 Year Ago $ 35,625 62,500 82,500 9,375 255,000 $ 445,000 $ 75,250 101,500 163,500 104,750 $ 445,000 2 Years Ago For both the current year and one year ago, compute the following ratios $ 37,800 50,200 54,000 5,000 230,500 $ 377,500 $ $1,250 83,500 163,500 79,250 $ 377,500

Required Information [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-tere notes payable Common stock, $10 par value Retained earnings Total liabilities and equity Current Year $ 31,800 89,500 112,500 10,700 278,500 $ 523,000 $ 129,900 98,500 163,500 131,100 $ 523,000 1 Year Ago $ 35,625 62,500 82,500 9,375 255,000 $ 445,000 $ 75,250 101,500 163,500 104,750 $ 445,000 2 Years Ago For both the current year and one year ago, compute the following ratios $ 37,800 50,200 54,000 5,000 230,500 $ 377,500 $ $1,250 83,500 163,500 79,250 $ 377,500

Managerial Accounting: The Cornerstone of Business Decision-Making
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 19BEA
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Required information Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses, Net income Earnings per share $ 411,225 209,550 12,100 9,525 Current Year: 1 Year Ago: $ 673,500 Numerator: 642,400 $ 31,100 $ 1.90 (1) Debt and equity ratios (2-0) Compute debt-to-equity ratio for the current year and one year ago (2-b) Based on debt-to-equity ratio, does the company have more or less debt in the current year versus one year ago? Required 1 Required 2A Required 28 Required 34 Required 38 Compute debt-to equity ratio for the current year and one year ago. Debt-To-Equity Ratio 1 1 " $ 345,500 134,980 13,300 8,845 (3-0) 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. Denominator: < Required 1 $ 532,000 = 502,625 $ 29,375 $ 1.80 = Debt-To-Equity Ratio Debt-to-equity ratio Required 28 > 0 to 1 0 to 1
Transcribed Image Text:Required information Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses, Net income Earnings per share $ 411,225 209,550 12,100 9,525 Current Year: 1 Year Ago: $ 673,500 Numerator: 642,400 $ 31,100 $ 1.90 (1) Debt and equity ratios (2-0) Compute debt-to-equity ratio for the current year and one year ago (2-b) Based on debt-to-equity ratio, does the company have more or less debt in the current year versus one year ago? Required 1 Required 2A Required 28 Required 34 Required 38 Compute debt-to equity ratio for the current year and one year ago. Debt-To-Equity Ratio 1 1 " $ 345,500 134,980 13,300 8,845 (3-0) 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. Denominator: < Required 1 $ 532,000 = 502,625 $ 29,375 $ 1.80 = Debt-To-Equity Ratio Debt-to-equity ratio Required 28 > 0 to 1 0 to 1
1 Required Information. [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 Current Year $ 31,800 89,500 Interest expense Income tax expense Total costs and expenses Net income Earnings per share (1) Debt and equity ratios 112,500 10,700 278,500 $ 523,000 Liabilities and Equity Accounts payable Long-term notes payable.. Common stock, $10 par value Retained earnings Total liabilities and equity For both the current year and one year ago, compute the following ratios $ 129,900 98,500 163,500 131,100 $ 523,000 $ 411,225 209,550 12,100 9,525 Current Year 1 Year Ago $ 35,625 62,500 82,500 9,375 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 i $ 673,500 255,000 $ 445,000 642,400 $31,100 $1.90 $ 75,250 101,500 163,500 104,750 $ 445,000 2 Years Ago $ 37,800 50,200 54,000 5,000 230,500 $ 377,500 $ 51,250 83,500 163,500 79,250 $ 377,500 $ 345,500 134,980 13,300 8,845 1 Year Ago $ 532,000 582,625 $ 29,375 $ 1.80
Transcribed Image Text:1 Required Information. [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 Current Year $ 31,800 89,500 Interest expense Income tax expense Total costs and expenses Net income Earnings per share (1) Debt and equity ratios 112,500 10,700 278,500 $ 523,000 Liabilities and Equity Accounts payable Long-term notes payable.. Common stock, $10 par value Retained earnings Total liabilities and equity For both the current year and one year ago, compute the following ratios $ 129,900 98,500 163,500 131,100 $ 523,000 $ 411,225 209,550 12,100 9,525 Current Year 1 Year Ago $ 35,625 62,500 82,500 9,375 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 i $ 673,500 255,000 $ 445,000 642,400 $31,100 $1.90 $ 75,250 101,500 163,500 104,750 $ 445,000 2 Years Ago $ 37,800 50,200 54,000 5,000 230,500 $ 377,500 $ 51,250 83,500 163,500 79,250 $ 377,500 $ 345,500 134,980 13,300 8,845 1 Year Ago $ 532,000 582,625 $ 29,375 $ 1.80
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