Exercise 13-9

615 Chapter 13 Analysis of Financial Statements Simon Round percents. Exercise 13-6 year-end balance sheets follow. Express the balance sheets in amounts to the nearest one-tenth of a percent. Analyne and comment on the P2 2015 2013 31800 35.625 37,800 Accounts receivable, net .. 112.500 82.500 $4,000 375 5,000 Prepaid expenses Plant assets, net Total assets 10.700 278.500 255,000 230,500 523.000 5445.000 $377.500 Liabilities and Equity Accounts payable Long-term notes payable secured by 129.900 $ 75250 $ 51.250 mortgages on plane assets Common stock, $10 par value 131,100 104750 79,250 $523.000 45.000 t37750 Total labilities and equity Refer to Simon Company's balance sheets in Exercise 13-6. Analyze its year-end short-term liquidity Exercise 13-7 Co a te end of 2015, 2014, and 2013 by computing (1) the curreat ratio and (2) the acid-test ratio. Liquidity analysis Comment on the ratio results. (Round ratio amounts to two decimals.) P3 Kefer to the Simon Company information in Exercise 13-6. The company's income statements for the Exercise 13-8 years ended December 3i, 2015 and 2014, follow. Assume that all sales are on credit and then compute: Liquidity analysis and ( days' sales uncollected, (2) accounts receivable turnover, (3) inventory turnover, and (4) days sales in interpretation inventory. Comment on the changes in the ratios from 2014 to 2015. (Round amounts to one decimal.) P3 For Year Ended December 31 2015 2014 Sales Cost of goods sold . Other operating expenses Interest expense. Income taxes Total costs and expenses .. Net income Earnings per share $673.500 $411.225 $345.500 134,980 13,300 8,845 12.100 9.525 642400 $ 31,100 S 1.90 502.625 $ 29,375 Refer to the Simon Company information in Exercises 13-6 and 13-8. Compare the company's long-term Exercise 13.9 risk and capital structure positions at the end of 2015 and 2014 by computing these ratios: (1) debt and Risk and capital structu equity ratios-percent rounded to one decimal, (2) debt-to-equity ratio- rounded to two decimals, and analysis (3) times interest earned-rounded to one decimal. Comment on these ratio results. P3