Required Information [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Assets Current Year 1 Year Ago 2 Years Ago Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable $ 27,652 77,786 100,765 8,556 244,727 $ 459,486 87,247 162,500 $ 115,556 Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity 94,183 $459,486 $ 31,689 54,346 $ 33,016 45,369 49,289 74,013 8,235 227,826 $ 396,109 $ 68,281 92,927 162,500 72,401 $ 396,109 3,668 208,958 $340,300 $ 45,818 75,958 162,500 56,024 $340,300 The company's income statements for the current year and one year ago, follow. For Year Ended December 31 Sales Current Year $ 597,332 Cost of goods sold $364,373 Other operating expenses 185,173 Interest expense Income tax expense 10,155 7,765 Total costs and expenses Net income Earnings per share 1 Year Ago $ 471,370 567,466 $ 29,866 $1.84 $306,391 119,257 10,842 7,871 443,561 $ 27,809 $1.71 (1) Compute debt and equity ratio for the current year and one year ago. Current Year: 1 Year Ago: Current Year: 1 Year Ago: Debt Ratio Numerator: Denominator: Debt Ratio Debt ratio Equity Ratio Numerator: Denominator: 0% 0% =Equity Ratio = = Equity ratio 0 % 0%
Required Information [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Assets Current Year 1 Year Ago 2 Years Ago Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable $ 27,652 77,786 100,765 8,556 244,727 $ 459,486 87,247 162,500 $ 115,556 Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity 94,183 $459,486 $ 31,689 54,346 $ 33,016 45,369 49,289 74,013 8,235 227,826 $ 396,109 $ 68,281 92,927 162,500 72,401 $ 396,109 3,668 208,958 $340,300 $ 45,818 75,958 162,500 56,024 $340,300 The company's income statements for the current year and one year ago, follow. For Year Ended December 31 Sales Current Year $ 597,332 Cost of goods sold $364,373 Other operating expenses 185,173 Interest expense Income tax expense 10,155 7,765 Total costs and expenses Net income Earnings per share 1 Year Ago $ 471,370 567,466 $ 29,866 $1.84 $306,391 119,257 10,842 7,871 443,561 $ 27,809 $1.71 (1) Compute debt and equity ratio for the current year and one year ago. Current Year: 1 Year Ago: Current Year: 1 Year Ago: Debt Ratio Numerator: Denominator: Debt Ratio Debt ratio Equity Ratio Numerator: Denominator: 0% 0% =Equity Ratio = = Equity ratio 0 % 0%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
Current Year
1 Year Ago
2 Years Ago
$ 27,652
77,786
$ 31,689
54,346
100,765
8,556
244,727
$ 459,486
74,913
8,235
227,826
$ 396,109
$ 68,281
92,927
162,500
72,401
Long-term notes payable
Common stock, $10 par value
Retained earnings
$ 115,556
87,247
162,500
94,183
Total liabilities and equity
$ 459,486
$ 396,109
$ 33,016
45,369
49,289
3,668
208,958
$ 340,300
$ 45,818
75,958
162,500
56,024
$ 340,300
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
Interest expense
Income tax expense
Total costs and expenses
Net income
Earnings per share
Current Year
$ 597,332
$ 364,373
185,173
1 Year Ago
$ 471,370
10,155
7,765
$ 29,866
$ 1.84
$ 306,391
119,257
10,842
7,871
443,561
$ 27,809
$ 1.71
567,466
(1) Compute debt and equity ratio for the current year and one year ago.
Current Year:
1 Year Ago:
Current Year:
1 Year Ago:
Debt Ratio
Numerator:
Denominator:
Debt Ratio
Debt ratio
0%
0 %
Equity Ratio
Numerator:
Denominator:
= Equity Ratio
1
=
Equity ratio
=
0 %
I
=
0 %](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F45771f59-3290-4674-bf0b-df5a349a7c67%2F2056e94f-1c74-4caa-9367-8b119ff9f0c5%2Fbo6v499_processed.png&w=3840&q=75)
Transcribed Image Text: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
Current Year
1 Year Ago
2 Years Ago
$ 27,652
77,786
$ 31,689
54,346
100,765
8,556
244,727
$ 459,486
74,913
8,235
227,826
$ 396,109
$ 68,281
92,927
162,500
72,401
Long-term notes payable
Common stock, $10 par value
Retained earnings
$ 115,556
87,247
162,500
94,183
Total liabilities and equity
$ 459,486
$ 396,109
$ 33,016
45,369
49,289
3,668
208,958
$ 340,300
$ 45,818
75,958
162,500
56,024
$ 340,300
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
Interest expense
Income tax expense
Total costs and expenses
Net income
Earnings per share
Current Year
$ 597,332
$ 364,373
185,173
1 Year Ago
$ 471,370
10,155
7,765
$ 29,866
$ 1.84
$ 306,391
119,257
10,842
7,871
443,561
$ 27,809
$ 1.71
567,466
(1) Compute debt and equity ratio for the current year and one year ago.
Current Year:
1 Year Ago:
Current Year:
1 Year Ago:
Debt Ratio
Numerator:
Denominator:
Debt Ratio
Debt ratio
0%
0 %
Equity Ratio
Numerator:
Denominator:
= Equity Ratio
1
=
Equity ratio
=
0 %
I
=
0 %
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