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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 secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity expenses Interest expense Income taxes Total costs and expenses Net income Earnings per share 2017 $31,800 89,500 112,500 82,500 10,700 9,375 278,500 255,000 230,500 $523,000 $445,000 $377,500 $129,900 $75,250 $ 51,250 The company's income statements for the years ended December 31, 2017 and 2016, follow. For Year Ended 2017 2016 December 31 Sales Cost of goods sold $411,225 Other operating 209,550 12,100 9,525 ercise 13-9 Part 3 2016 2015 $ 35,625 $ 37,800 62,500 50,200 54,000 5,000 98,500 101,500 83,500 163,500 163,500 163,500 131,100 104,750 79,250 $523,000 $445,000 $377,500 $673,500 642, 400 $ 31,100 1.90 $345,500 134,980 13,300 8,845 $532,000 502,625 $ 29,375 $ 1.80 Calculate the company's long-term risk and capital structure positions at the end of 2017 and 2016 by computing the following ratios.

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 secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity expenses Interest expense Income taxes Total costs and expenses Net income Earnings per share 2017 $31,800 89,500 112,500 82,500 10,700 9,375 278,500 255,000 230,500 $523,000 $445,000 $377,500 $129,900 $75,250 $ 51,250 The company's income statements for the years ended December 31, 2017 and 2016, follow. For Year Ended 2017 2016 December 31 Sales Cost of goods sold $411,225 Other operating 209,550 12,100 9,525 ercise 13-9 Part 3 2016 2015 $ 35,625 $ 37,800 62,500 50,200 54,000 5,000 98,500 101,500 83,500 163,500 163,500 163,500 131,100 104,750 79,250 $523,000 $445,000 $377,500 $673,500 642, 400 $ 31,100 1.90 $345,500 134,980 13,300 8,845 $532,000 502,625 $ 29,375 $ 1.80 Calculate the company's long-term risk and capital structure positions at the end of 2017 and 2016 by computing the following ratios.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 secured by 2017: 2016: mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity expenses Interest expense Income taxes Total costs and expenses Net income Earnings per share Exercise 13-9 Part 3 (3) Times interest earned. Choose Numerator: The company's income statements for the years ended December 31, 2017 and 2016, follow. For Year Ended 2016 December 31 Sales Cost of goods sold Other operating $411, 225 209,550 12,100 9,525 2017 I 1 1 $ 31,800 $ 35,625 $ 37,800 89,500 62,500 50,200 54,000 5,000 2017 112,500 82,500 10,700 9,375 278,500 255,000 230,500 $523,000 $445,000 $377,500 $129,900 $75,250 $ 51,250 2016 98,500 101, 500 163,500 163,500 131, 100 104,750 $523,000 $445,000 $377,500 $673,500 642, 400 $ 31,100 1.90 Times Interest Earned /Choose Denominator: 2015 $345, 500 134,980 13,300 8,845 Calculate the company's long-term risk and capital structure positions at the end of 2017 and 2016 by computing the following ratios. ||||| 83,500 163,500 79,250 = = $532,000 502,625 $ 29,375 $ 1.80 Times Interest Earned Times interest earned times times
Transcribed Image Text: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 secured by 2017: 2016: mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity expenses Interest expense Income taxes Total costs and expenses Net income Earnings per share Exercise 13-9 Part 3 (3) Times interest earned. Choose Numerator: The company's income statements for the years ended December 31, 2017 and 2016, follow. For Year Ended 2016 December 31 Sales Cost of goods sold Other operating $411, 225 209,550 12,100 9,525 2017 I 1 1 $ 31,800 $ 35,625 $ 37,800 89,500 62,500 50,200 54,000 5,000 2017 112,500 82,500 10,700 9,375 278,500 255,000 230,500 $523,000 $445,000 $377,500 $129,900 $75,250 $ 51,250 2016 98,500 101, 500 163,500 163,500 131, 100 104,750 $523,000 $445,000 $377,500 $673,500 642, 400 $ 31,100 1.90 Times Interest Earned /Choose Denominator: 2015 $345, 500 134,980 13,300 8,845 Calculate the company's long-term risk and capital structure positions at the end of 2017 and 2016 by computing the following ratios. ||||| 83,500 163,500 79,250 = = $532,000 502,625 $ 29,375 $ 1.80 Times Interest Earned Times interest earned times times
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