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-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity Current Year 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 $ 32,012 91,844 115,477 10,309 298,421 $ 548,063 $ 434,614 220,869 12,112 9,262 For both the current year and one year ago, compute the following ratios: Current Year $ 137,832 106, 127 162,500 141,604 $ 548,063 $ 472,468 1 Year Ago $ 38,553 64,823 87,407 9,823 271,862 $ 472,468 The company's income statements for the current year and one year ago, follow. $ 712,482 $ 79,847 108,668 162,500 121,453 676,857 $ 35,625 $ 2.19 2 Years Ago $ 40,988 54,115 57,061 4,599 249,137 $ 405,900 $365,454 142,246 12,931 8,434 $ 53,043 87,910 162,500 102,447 $ 405,900 1 Year Ago $ 562,237 529,065 $ 33,172 $ 2.04 (1) Debt and equity ratios. (2-a) 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? (3-a) 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?
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-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity Current Year 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 $ 32,012 91,844 115,477 10,309 298,421 $ 548,063 $ 434,614 220,869 12,112 9,262 For both the current year and one year ago, compute the following ratios: Current Year $ 137,832 106, 127 162,500 141,604 $ 548,063 $ 472,468 1 Year Ago $ 38,553 64,823 87,407 9,823 271,862 $ 472,468 The company's income statements for the current year and one year ago, follow. $ 712,482 $ 79,847 108,668 162,500 121,453 676,857 $ 35,625 $ 2.19 2 Years Ago $ 40,988 54,115 57,061 4,599 249,137 $ 405,900 $365,454 142,246 12,931 8,434 $ 53,043 87,910 162,500 102,447 $ 405,900 1 Year Ago $ 562,237 529,065 $ 33,172 $ 2.04 (1) Debt and equity ratios. (2-a) 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? (3-a) 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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please do not give solution in image format thanku
![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-term notes payable
Common stock, $10 par value
Retained earnings
Total liabilities and equity
Current Year
$ 32,012
91,844
115,477
10,309
298,421
$ 548,063 $ 472,468
Income tax expense
Total costs and expenses
Net income
Earnings per share
$ 137,832
106,127
162,500
141,604
$ 79,847
108,668
162,500
121,453
$ 548,063 $ 472,468
For both the current year and one year ago, compute the following ratios:
$ 434,614
220,869
12,112
9,262
1 Year Ago
$ 38,553
64,823
87,407
9,823
271,862
Current Year
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
$ 712,482
676,857
$ 35,625
$ 2.19
2 Years Ago
$365,454
142,246
12,931
8,434
$ 40,988
54,115
57,061
4,599
249,137
$ 405,900
$ 53,043
87,910
162,500
102,447
$ 405,900
1 Year Ago
$ 562,237
529,065
$ 33,172
$ 2.04
(1) Debt and equity ratios.
(2-a) 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?
(3-a) 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?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F52615ebc-3deb-446b-94e8-8fddbf33eb42%2F480c4c75-adce-47a8-80c1-4eb276640850%2Fxe4zd4_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
Long-term notes payable
Common stock, $10 par value
Retained earnings
Total liabilities and equity
Current Year
$ 32,012
91,844
115,477
10,309
298,421
$ 548,063 $ 472,468
Income tax expense
Total costs and expenses
Net income
Earnings per share
$ 137,832
106,127
162,500
141,604
$ 79,847
108,668
162,500
121,453
$ 548,063 $ 472,468
For both the current year and one year ago, compute the following ratios:
$ 434,614
220,869
12,112
9,262
1 Year Ago
$ 38,553
64,823
87,407
9,823
271,862
Current Year
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
$ 712,482
676,857
$ 35,625
$ 2.19
2 Years Ago
$365,454
142,246
12,931
8,434
$ 40,988
54,115
57,061
4,599
249,137
$ 405,900
$ 53,043
87,910
162,500
102,447
$ 405,900
1 Year Ago
$ 562,237
529,065
$ 33,172
$ 2.04
(1) Debt and equity ratios.
(2-a) 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?
(3-a) 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?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 5 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education