4 Part 2 of 4 16.66 points Skipped 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 $ 37,152 63,066 eBook Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Hint Print Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity $ 31,466 91,197 119,296 10,133 286,612 $ 538,704 $ 135,479 102,289 162,500 138,436 83,337 9,460 271,385 $ 464,400 $ 80,838 107,880 163,500 112,182 $ 538,704 $ 464,400 For both the current year and one year ago, compute the following ratios: $ 37,547 52,106 53,855 4,214 239,278 $ 387,000 $ 50,062 85,527 163,500 87,911 $ 387,000 References The company's income statements for the current year and one year ago, follow. Other operating expenses For Year Ended December 31 Sales Cost of goods sold Interest expense Income tax expense Total costs and expenses Net income Earnings per share Current Year 1 Year Ago $ 700,315 $ 552,636 $ 427,192 217,098 11,905 9,104 665,299 $ 35,016 $ 2.15 $ 359,213 139,817 12,711 8,290 520,031 $ 32,605 $ 2.01 4 Part 2 of 4 16.66 points Skipped Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable $ 31,466 91,197 119,296 10,133 286,612 $ 538,704 $ 37,152 63,066 83,337 9,460 271,385 $ 464,400 $ 80,838 107,880 163,500 112,182 Long-term notes payable Common stock, $10 par value $ 135,479 102,289 162,500 138,436 Total liabilities and equity $ 538,704 $ 464,400 Retained earnings For both the current year and one year ago, compute the following ratios: $ 37,547 52,106 53,855 4,214 239,278 $ 387,000 $ 50,062 85,527 163,500 87,911 $ 387,000 eBook The company's income statements for the current year and one year ago, follow. Hint Print References For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Earnings per share Current Year 1 Year Ago $ 700,315 $ 552,636 $ 427,192 217,098 11,905 9,104 665,299 $ 35,016 $ 359,213 139,817 12,711 8,290 520,031 $ 32,605 $ 2.15 $ 2.01 (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? 4 Part 2 of 4 Required information (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. 16.66 points Required 1 Required 2A Required 2B Required 3A Required 3B Skipped eBook Compute debt and equity ratio for the current year and one year ago. Hint Current Year: 1 Year Ago: Print References Current Year: 1 Year Ago: Debt Ratio Numerator: Denominator: = Debt Ratio Debt ratio % % / Equity Ratio Numerator: Denominator: / = < Required 1 Required 2A > Equity Ratio Equity ratio % % 4 Required information (2-a) Compute debt-to-equity ratio for the current year and one year ago. Part 2 of 4 16.66 points Skipped (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? Complete this question by entering your answers in the tabs below. eBook + Hint Required 1 Required 2A Required 2B Required 3A Required 3B Compute debt-to-equity ratio for the current year and one year ago. Print Current Year: 1 Year Ago: References Numerator: Debt-To-Equity Ratio Denominator: = Debt-To-Equity Ratio = Debt-to-equity ratio = to 1 to 1 < Required 1 Required 2B > 4 Required information Part 2 of 4 (1) Debt and equity ratios. 6.66 points Skipped (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? Complete this question by entering your answers in the tabs below. eBook Required 1 Required 2A Required 2B Required 3A Required 3B Hint Based on debt-to-equity ratio, the company has Based on debt-to-equity ratio, does the company have more or less debt in the current year versus one year ago? debt in the current year versus one year ago. Print < Required 2A Required 3A > References 4 Part 2 of 4 16.66 points Required information (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? Skipped Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Required 3A Required 3B eBook Hint Compute times interest earned for the current year and one year ago. Print Current Year: 1 Year Ago: References Numerator: Times Interest Earned I Denominator: = Times Interest Earned = Times interest earned = times = times < Required 2B Required 3B > 4 Part 2 of 4 16.66 points Skipped 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 Earnings per share Current Year 1 Year Ago $ 700,315 $ 552,636 $ 427,192 217,098 $ 359,213 139,817 12,711 8,290 665,299 520,031 $ 32,605 $ 2.01 11,905 9,104 $ 35,016 $ 2.15 eBook Hint Print ol References (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? Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B 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 for creditors in the current year versus one year ago. < Required 3A Required 3B >