Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net $ 24,930 71,524 89,927 8,109 232,313 $426,803 $29,435 $ 30,652 49,965 69,429 7,881 211,224 38,886 42,258 3,307 185,497 Total assets $ 367,934 $ 300,600 Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings $105,211 $ 62,803 $ 40,473 81,844 162,500 77,248 82,932 162,500 59,699 $ 367,934 $ 300,600 68,426 162,500 29,201 Total liabilities and equity $426,803 The company's income statements for the Current Year and 1 Year Ago, follow. 1 Yr Ago $ 437,841 For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Current Yr $554,844 $338,455 172,002 9,432 7,213 $284,597 110,774 10,070 6,568 527,102 $ 27,742 412,009 Net income $ 25,832
Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net $ 24,930 71,524 89,927 8,109 232,313 $426,803 $29,435 $ 30,652 49,965 69,429 7,881 211,224 38,886 42,258 3,307 185,497 Total assets $ 367,934 $ 300,600 Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings $105,211 $ 62,803 $ 40,473 81,844 162,500 77,248 82,932 162,500 59,699 $ 367,934 $ 300,600 68,426 162,500 29,201 Total liabilities and equity $426,803 The company's income statements for the Current Year and 1 Year Ago, follow. 1 Yr Ago $ 437,841 For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Current Yr $554,844 $338,455 172,002 9,432 7,213 $284,597 110,774 10,070 6,568 527,102 $ 27,742 412,009 Net income $ 25,832
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 4PB
Related questions
Question
100%
![-----
Simon Company's year-end balance sheets follow.
At December 31
Current Yr
1 Yr Ago
2 Yrs Ago
Assets
Cash
Accounts receivable, net
Merchandise inventory
Prepaid expenses
Plant assets, net
$ 24,930
71,524
89,927
8, 109
232,313
$29,435 $ 30,652
49,965
69,429
7,881
211,224
38,886
42,258
3,307
185,497
Total assets
$426,803
$ 367,934 $ 300,600
Liabilities and Equity
Accounts payable
Long-term notes payable secured by
mortgages on plant assets
Common stock, $10 par value
Retained earnings
$105,211
$ 62,803 $ 40,473
81,844
162,500
77,248
$426,803
82,932
162,500
59,699
$ 367,934 $ 300,600
68,426
162,500
29,201
Total liabilities and equity
The company's income statements for the Current Year and 1 Year Ago, follow.
1 Yr Ago
$ 437,841
For Year Ended December 31
Sales
Cost of goods sold
other operating expenses
Interest expense
Income tax expense
Total costs and expenses
Current Yr
$554,844
$338,455
172,002
9,432
7,213
$284,597
110,774
10,070
6,568
527,102
$ 27,742
412,009
$ 25,832
Net income
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Transcribed Image Text:-----
Simon Company's year-end balance sheets follow.
At December 31
Current Yr
1 Yr Ago
2 Yrs Ago
Assets
Cash
Accounts receivable, net
Merchandise inventory
Prepaid expenses
Plant assets, net
$ 24,930
71,524
89,927
8, 109
232,313
$29,435 $ 30,652
49,965
69,429
7,881
211,224
38,886
42,258
3,307
185,497
Total assets
$426,803
$ 367,934 $ 300,600
Liabilities and Equity
Accounts payable
Long-term notes payable secured by
mortgages on plant assets
Common stock, $10 par value
Retained earnings
$105,211
$ 62,803 $ 40,473
81,844
162,500
77,248
$426,803
82,932
162,500
59,699
$ 367,934 $ 300,600
68,426
162,500
29,201
Total liabilities and equity
The company's income statements for the Current Year and 1 Year Ago, follow.
1 Yr Ago
$ 437,841
For Year Ended December 31
Sales
Cost of goods sold
other operating expenses
Interest expense
Income tax expense
Total costs and expenses
Current Yr
$554,844
$338,455
172,002
9,432
7,213
$284,597
110,774
10,070
6,568
527,102
$ 27,742
412,009
$ 25,832
Net income
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of 8
![Sales
$554,844
$ 437,841
Cost of goods sold
other operating expenses
Interest expense
$338,455
172,002
9,432
7,213
$284,597
110,774
10,070
6,568
Income tax expense
Total costs and expenses
527,102
412,009
Net income
$ 27,742
$ 25,832
Earnings per share
2$
1.71
24
1.59
For both the Current Year and 1 Year Ago, compute the following ratios:
Exercise 13-9 Part 2
(2) Debt-to-equity ratio.
Debt-To-Equity Ratio
Choose Numerator:
Choose Denominator:
Debt-To-Equity Ratio
%3D
Debt-to-equity ratio
%3D
Current Year:
to 1
%3D
1 Year Ago:
to 1
%3D
< Prev
3
4
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Transcribed Image Text:Sales
$554,844
$ 437,841
Cost of goods sold
other operating expenses
Interest expense
$338,455
172,002
9,432
7,213
$284,597
110,774
10,070
6,568
Income tax expense
Total costs and expenses
527,102
412,009
Net income
$ 27,742
$ 25,832
Earnings per share
2$
1.71
24
1.59
For both the Current Year and 1 Year Ago, compute the following ratios:
Exercise 13-9 Part 2
(2) Debt-to-equity ratio.
Debt-To-Equity Ratio
Choose Numerator:
Choose Denominator:
Debt-To-Equity Ratio
%3D
Debt-to-equity ratio
%3D
Current Year:
to 1
%3D
1 Year Ago:
to 1
%3D
< Prev
3
4
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