1:51 AM Mon Apr 8 Done < AA Homework: Financial Ratios Assignment i ezto.mheducation.com Saved 8 Long-term notes payable Common stock, $10 par value Retained earnings 78,692 163,500 73,199 Total liabilities and equity $ 418,574 $ 360,840 84,653 162,500 51,485 67,119 163,500 30,389 $ 300,700 Part 2 of 2 2.5 points eBook 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 Income tax expense Total costs and expenses Net income Hint Earnings per share Current Year 1 Year Ago $ 544,146 $ 429,400 $ 331,929 168,685 $ 279,110 108,638 9,876 6,441 516,938 404,065 $ 27,208 $ 25,335 $ 1.67 $ 1.56 9,250 7,074 Print For both the current year and one year ago, compute the following ratios: (1) Debt and equity ratios. (2) Debt-to-equity ratio. References Mc Graw Hill (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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3A Required 3B Based on times interest earned, is the company more or less risky for creditors in the Current Year versus 1 Year Ago? Based on times interest earned, the company is < Required 3A for creditors in the current year versus one year ago. Required 3B < Prev of 8 Next Help Save & Exit Submit 5 Check my work 1:51 AM Mon Apr 8 Done < AA Homework: Financial Ratios Assignment i 8 ! Required information VI yuuuu ezto.mheducation.com Saved Other operating expenses 168,685 Part 2 of 2 Interest expense Income tax expense 9,250 7,074 108,638 9,876 6,441 Total costs and expenses Net income 516,938 404,065 $ 27,208 $ 25,335 2.5 points Earnings per share $ 1.67 $ 1.56 For both the current year and one year ago, compute the following ratios: eBook (1) Debt and equity ratios. (2) Debt-to-equity ratio. Hint t Print (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? Complete this question by entering your answers in the tabs below. References Required 1 Required 2 Required 3A Required 3B Mc Graw Hill Compute debt and equity ratio for the current year and one year ago. Debt Ratio Numerator: I Denominator: = Debt Ratio Accounts receivable /Net sales = Debt ratio Current Year: $ 73,723 / $ 1 Year Ago: $ 51,023 / $ 544,146 = 429,400 = 13.5 % 11.9 % Equity Ratio Numerator: Net sales Current Year: $ 1 Year Ago: $ Denominator: = Equity Ratio / Accounts receivable, net = Equity ratio 544,146 / $ 429,400 / $ 125,456 = 91,112 = 433.7 % 471.3 % < Required 1 Required 2 > S < Prev 8 of 8 Next Help Save & Exit Submit 5 Check my work 1:51 AM Mon Apr 8 Done < AA Homework: Financial Ratios Assignment i 8 , ezto.mheducation.com Saved Retained earnings 73,199 51,485 30,389 Total liabilities and equity $ 418,574 $ 360,840 $ 300,700 Part 2 of 2 2.5 points eBook 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 Income tax expense Total costs and expenses Net income Current Year $ 544,146 $ 331,929 168,685 9,250 7,074 1 Year Ago $ 429,400 $ 27,208 $ 279,110 108,638 9,876 6,441 404,065 $ 25,335 516,938 Hint Earnings per share $ 1.67 For both the current year and one year ago, compute the following ratios: (1) Debt and equity ratios. Print (2) Debt-to-equity ratio. References Mc Graw Hill $ 1.56 (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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3A Required 3B Compute times interest earned for the current year and one year ago. Numerator: Cost of goods sold Current Year: 1 Year Ago: Times Interest Earned Denominator: Times Interest Earned Income before interest and income tax = Times interest earned = 0 times < Required 2 Required 3B > S < Prev 8 of 8 Next 0 times Help Save & Exit Submit 5 Check my work 1:51 AM Mon Apr 8 Done < AA Homework: Financial Ratios Assignment i 8 ezto.mheducation.com Saved Part 2 of 2 2.5 points 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 Current Year 1 Year Ago 2 Years Ago $ 24,696 $ 29,733 73,723 $ 30,662 51,023 40,089 66,088 41,845 eBook Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity 90,893 7,953 221,309 $ 418,574 $ 360,840 Hint Accounts payable $ 103,183 Long-term notes payable 78,692 $ 62,202 84,653 Common stock, $10 par value Retained earnings 163,500 73,199 Print Total liabilities and equity $ 418,574 $ 360,840 7,426 206,570 162,500 51,485 3,341 184,763 $ 300,700 $ 39,692 67,119 163,500 30,389 $ 300,700 References The company's income statements for the current year and one 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 Net income Earnings per share Current Year 1 Year Ago $ 544,146 $ 429,400 $ 331,929 $ 279,110 108,638 9,876 6,441 516,938 404,065 168,685 9,250 7,074 $ 27,208 $ 1.67 $ 25,335 $ 1.56 Mc Graw Hill For both the current year and one year ago, compute the following ratios: (1) Debt and equity ratios. (2) Debt-to-equity ratio. (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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3A Required 3B S < Prev 8 of 8 --- Next Help Save & Exit Submit 5 Check my work 1:51 AM Mon Apr 8 Done < AA Homework: Financial Ratios Assignment i 8 , ezto.mheducation.com Saved Retained earnings 73,199 51,485 30,389 Total liabilities and equity $ 418,574 $ 360,840 $ 300,700 Part 2 of 2 2.5 points eBook 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 Income tax expense Total costs and expenses Net income Current Year $ 544,146 $ 331,929 168,685 9,250 7,074 1 Year Ago $ 429,400 $ 27,208 $ 279,110 108,638 9,876 6,441 404,065 $ 25,335 516,938 Hint Earnings per share $ 1.67 For both the current year and one year ago, compute the following ratios: (1) Debt and equity ratios. Print (2) Debt-to-equity ratio. References Mc Graw Hill $ 1.56 (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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3A Required 3B Compute debt-to-equity ratio for the current year and one year ago. Debt-To-Equity Ratio Numerator: Denominator: = Debt-To-Equity Ratio Net sales Current Year: $ 544,146 / / Accounts receivable, net $ = Debt-to-equity ratio 1 Year Ago: $ 429,400 / $ 62,373 = 45,556 = 8.72 to 1 9.43 to 1 < Required 1 Required 3A > S < Prev 8 of 8 Next Help Save & Exit Submit 5 Check my work