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Confused please help! All of this is one question about creating the debt-equity ratio through the chart. Required information Exercise 13-9 (Algo) Analyzing risk and
Confused please help! All of this is one question about creating the debt-equity ratio through the chart.
Required information Exercise 13-9 (Algo) Analyzing risk and capital structure LO P3 (Alternate Version] [The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. Current Year 1 Year Ago 2 Years Ago At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity $ 31,778 90, 260 118,117 10,029 288,427 $ 538, 611 $ 37,146 66,305 84,181 10,043 266,645 $ 464,320 $ 39,096 53,708 56,077 4,300 245,719 $ 398,900 $ 138, 138 100, 246 162,500 137, 727 $ 538,611 $ 76,116 105,726 162,500 119,978 $ 464,320 $ 53,181 88,157 162,500 95,062 $ 398,900 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 $ 700,194 $ 427,118 217,060 11,903 9,103 665, 184 $ 35,010 $ 2.15 1 Year Ago $ 552,541 $ 359,152 139,793 12,708 8, 288 519,941 $ 32,600 $ 2.01 Earnings per share Exercise 13-9 (Algo) Part 2 (Alternate Version) (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 Required 2B Compute debt-to-equity ratio for the current year and one year ago. Debt-To-Equity Ratio / Denominator: Numerator: = Debt-To-Equity Ratio Debt-to-equity ratio 0 to 1 Current Year: 1 II = 1 Year Ago: 1 II 0 to 1 Required 2A Required 2B > Exercise 13-9 (Algo) Part 2 (Alternate Version) (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 Based on debt-to-equity ratio, does the company have more or less debt in the current year versus one year ago? Based on debt-to-equity ratio, the company has debt in the current year versus one year ago. Required 2A Required 2BStep by Step Solution
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