Use the following information for the Exercises below. (Algo)[The following information applies to the questions displayed below.]Simon Company's year-end balance sheets follow.At December 31Current Year1 Year Ago2 Years AgoAssets$ 39,90056,49158,4114,616256,082$ 33,783$ 39,88871,89889,47410,785286,555CashAccounts receivable, netMerchandise inventory97,913125,59410,989Prepaid expensesPlant assets, net310,097$ 578,376Total assets$ 498,600$ 415,500Liabilities and EquityAccounts payableLong-term notes payableCommon stock, $10 par valueRetained earnings$ 144,016109,822$ 81,735113,531$ 54,29891,826163,500105,876163,500161,038163,500139,834Total liabilities and equity$ 578,376$ 498,600$ 415,500For both the current year and one year ago, compute the following ratios:Exercise 17-9 (Algo) Analyzing risk and capital structure LO P3The company's income statements for the current year and one year ago, follow.For Year Ended December 31Current Year1 Year AgoSales$ 751,889$ 593,334$ 458,652$ 385,667Cost of goods soldOther operating expensesInterest expense233,08612,7829,775150,11413,6478,900Income tax expenseTotal costs and expenses714,295558,328Net income$ 37,594$ 35,006Earnings per share$ 2.31$ 2.15(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?

Answer 2-a) Calculation of Debt to equity Ratio Debt to Equity Ratio = Total Debt/ Total Equity…

Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Current Year 1 Year Ago 2 Years Ago Assets $ 33,783 $ 39,900 56,491 58,411 4,616 $ 39,888 71,898 Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net 97,913 125,594 10,989 89,474 10,785 286,555 $ 498,600 310,097 256,082 Total assets $ 578,376 $ 415,500 Liabilities and Equity

Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Current Year 1 Year Ago 2 Years Ago Assets $ 33,783 $ 39,900 56,491 58,411 4,616 $ 39,888 71,898 Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net 97,913 125,594 10,989 89,474 10,785 286,555 $ 498,600 310,097 256,082 Total assets $ 578,376 $ 415,500 Liabilities and Equity

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

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 Current Year 1 Year Ago 2 Years Ago Cash $ 34,475 Accounts receivable, net 101,959 $ 42,354 70,522 Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable 130,758 11,329 317,729 $ 596,250 110,974 162,500 171,340 96,043 11,118 293,972 $ 514,009 $ 86,868 118,222 162,500 146,419 $ 596,250 $ 514,009 $ 41,986 56,541 60,824 4,758 259,991 $ 424,100 $ 54,862 91,852 162,500 114,886 $ 424,100 $ 151,436 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: The company's Income statements for the current year and 1 year ago, follow. For Year Ended December 31 Sales Cost of goods sold Interest expense Income tax expense Other operating expenses Total costs and expenses…
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The following information applies to the questions displayed below.]Simon Company's year-end balance sheets follow. At December 31 Current Year 1 Year Ago 2 Years Ago Assets Cash $ 32,700 $ 37,849 $ 37,130 Accounts receivable, net 94,775 65,580 51,527 Merchandise inventory 120,330 86,659 53,800 Prepaid expenses 10,118 10,034 4,252 Plant assets, net 285,450 268,303 235,991 Total assets $ 543,373 $ 468,425 $ 382,700 Liabilities and Equity Accounts payable $ 138,006 $ 78,372 $ 51,022 Long-term notes payable 100,111 107,738 83,731 Common stock, $10 par value 163,500 163,500 162,500 Retained earnings 141,756 118,815 85,447 Total liabilities and equity $ 543,373 $ 468,425 $ 382,700 The company’s income statements for the current year and 1 year ago, follow. For Year Ended December 31 Current Year 1 Year Ago Sales $ 706,385 $ 557,426 Cost of goods sold $ 430,895 $ 362,327 Other operating expenses 218,979 141,029 Interest…
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