Current Yr 1 Yr Ago 2 Yrs Ago $ 25,827 77, 170 95,086 8, 317 244,886 $451, 286 $ 31,746 $ 31,454 54,466 43, 222 72,692 45,576 8,170 3,602 221,966 200,346 $389, 040 $324,200 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 secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $112, 370 $ 64,433 $ 43,650 84, 842 162,500 91,574 $451, 286 90,374 72,365 162,500 162,500 71,733 45,685 $389, 040 $324, 200 The company's income statements for the Current Year and 1 Year Ago, follow. 1 Yr Ago $462,958 $300,923 For Year Ended Current Yr December 31 Sales $586,672 Cost of goods sold $357,870 Other operating 181, 868 expenses Interest expense 9,973 Income tax 7,627 expense Total costs and 557,338 expenses Net income $ 29, 334 Earnings per $ 1.81 share 117, 128 10,648 6,944 435, 643 $ 27, 315 $ 1.68 For both the Current Year and 1 Year Ago, compute the following ratios: (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 Required 3B Times interest earned. Times Interest Earned Choose Numerator: 1 Choose Denominator: Times Interest Earned Times interest earned 1 times Current Year: 1 Year Ago: times Current Yr 1 Yr Ago 2 Yrs Ago $ 25,827 77, 170 95,086 8, 317 244,886 $451, 286 $ 31,746 $ 31,454 54,466 43,222 72,692 45,576 8, 170 3,602 221,966 200,346 $389, 040 $324, 200 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 secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $112, 370 $ 64,433 $ 43,650 84,842 162,500 91,574 $451,286 90,374 72,365 162,500 162,500 71,733 45,685 $389, 040 $324,200 The company's income statements for the Current Year and 1 Year Ago, follow. 1 Yr Ago $462,958 $300,923 For Year Ended Current Yr December 31 Sales $586,672 Cost of goods $357,870 sold Other operating 181, 868 expenses Interest expense 9,973 Income tax 7,627 expense Total costs and 557,338 expenses Net income $ 29,334 Earnings per $ 1.81 share 117, 128 10,648 6,944 435,643 $ 27,315 $ 1.68 For both the Current Year and 1 Year Ago, compute the following ratios: (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 Required 3B Based on times interest earned, is the company more or less risky for creditors in the Current Year versus 1 Year Ago? Times interest earned
