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

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 50E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...

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[The following information applies to the questions displayed below.] Lydex Company's financial statements for the last two years are as follows:Lydex CompanyComparative Balance Sheet This YearLast YearAssets Current assets: Cash$ 860,000$ 1,100,000Marketable securities0300,000Accounts receivable, net2, 300, 0001,400,000 Inventory 3,500,0002, 000, 000Prepaid expenses 240, 000180,000 Total current assets6, 900, 0004, 980, 000 Plant and equipment, net9,320,0008, 950,000 Total assets$ 16,220,000$ 13,930,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities$ 3,910, 000$ 2,780,000 Note payable, 10 % 3,600,0003, 000, 000 Total liabilities 7, 510, 0005, 780,000 Stockholders' equity: Common stock, $75 par value 7, 500, 0007, 500,000 Retained earnings 1,210,000650,000 Total stockholders' equity8, 710, 0008, 150,000 Total liabilities and stockholders' equity$ 16, 220, 000$ 13,930,000Lydex CompanyComparative Income Statement and Reconciliation This YearLast YearSales (all on…
Suppose the following financial data were reported by 3M Company for 2019 and 2020 (dollars in millions). 3M CompanyBalance Sheets (partial) 2020 2019Current assets Cash and cash equivalents $3,180 $1,836Accounts receivable, net 3,600 3,180Inventories 2,738 3,019Other current assets 1,932 1,590Total current assets $11,450 $9,625Current liabilities $4,830 $5,887 Calculate the current ratio and working capital for 3M for 2019 and 2020. (Round current ratio to 2 decimal places, e.g. 1.25 : 1. Enter working capital answers to million.) Current ratio 2019 :12020 :1 Working capital 2019 $ million2020 $ million Link to Text
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Prepare the income statements and balance sheets for years 2018 and 2019 for Thompson Company using the following information. The balance sheet numbers are at the end of year figures.Item20182019Accounts Payable120.0150.0Accounts Receivable150.0180.0Accumulated Depreciation330.0360.0Cash & Cash Equivalents10.012.0Common Stock150.0200.0Cost of Goods Sold750.0850.0Depreciation25.030.0Interest Expense30.033.0Inventory200.0180.0Long-term Debt150.0150.0Gross Plant & Equipment650.0780.0Retained Earnings208.5225.0Sales1,500.01,700.0SG&A Expenses500.0570.0Notes Payable51.567.0Tax Rate21%21%(2) Answer the following questions:(a) How much did Thompson Company spend in acquiring fixed assets in 2019?(b) How much dividend did Thompson Company pay out during 2019?(c) Using the end of year numbers, did the long-term solvency ratios improve or deteriorate from 2018 to 2019? Answer this question using at least two long-term solvency ratios.(d) Using the end of year numbers, did the asset…
Summary financial information for Gandaulf Company is as follows. Compute the amount and percentage changes in 2022 using horizontal analysis, assuming 2024 is the base year. (Enter negative amounts and percentages using either a negative sign preceding the number e.g. -45,-45% or parentheses e.g. (45), (45%). Round percentages to 2 decimal places, e.g. 1.25%.) Current Assets Dec. 31, 2022 Dec. 31, 2024 $191,100 $210,000 $ Plant Assets 1,058,600 790,000 Total assets $1,249,700 $1,000,000 $ Increase (Decrease) in 2022 Amount Percent % % %
Suppose the following financial data were reported by 3M Company for 2019 and 2020 (dollars in millions). 3M CompanyBalance Sheets (partial) 2020 2019 Current assets Cash and cash equivalents $3,200 $1,881 Accounts receivable, net 3,500 3,175 Inventories 2,702 3,044 Other current assets 1,896 1,582 Total current assets $11,298 $9,682 Current liabilities $4,791 $5,869 1.Calculate the current ratio and working capital for 3M for 2019 and 2020. 2.Suppose that at the end of 2020, 3M management used $198 million cash to pay off $198 million of accounts payable. How would its current ratio and working capital have changed?