Question
At December 31 Assets Current Year 1 Year Ago 2 Years Ago Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total
At December 31 Assets Current Year 1 Year Ago 2 Years Ago Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable $ 28,435 84,062 104,655 8,974 255,824 $ 481,950 $ 122,406 Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity 87,888 162,500 109,156 $ 33,570 57,585 79,169 8,550 236,600 $ 415,474 $ 70,215 96,515 162,500 86,244 $ 481,950 $ 415,474 $ 33,598 44,345 49,164 3,771 211,922 $ 342,800 $ 43,892 76,516 162,500 59,892 $ 342,800 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 $ 626,535 $ 494,414 $ 382,186 194,226 $ 321,369 125,087 11,372 7,416 10,651 8,145 595,208 $ 31,327 $1.93 465,244 $ 29,170 $ 1.80 (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? Complete this question by entering your answers in the tabs below. Required 2A Required 2B Compute debt-to-equity ratio for the current year and one year ago. Debt-To-Equity Ratio Numerator: 1 Denominator: = Debt-To-Equity Ratio == Debt-to-equity ratio
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