Exercise 13-9 Analyzing risk and capital structure LO P3 [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs 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 secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 29,202 88,126 109,785 9,598 273,625 $518, 256 $ 35,894 $ 37,786 61,583 51,379 81,377 54,198 9,422 4,115 251,680 230,422 $ 439,876 $ 377,980 $123, 242 $ 72,852 $ 49,883 93,050 162,5ee 131,464 $518,256 103,195 85, 186 162,580 162,580 101,329 80, 331 $ 439,876 $ 377,988 The company's income statements for the Current Year and 1 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 Yr $663,333 $494,633 205,633 11,277 8,623 630,166 $ 33,167 1 Yr Ago $ 523,452 $340, 244 132,433 12,39 7,852 492,568 $ 30,884 $ 2.84 1.90 For both the Current Year and 1 Year Ago, compute the following ratios: Exercise 13-9 Part 1 1) Debt and equity ratios. Debt Ratio Debt ratio Current Year: Debt Ratio Choose Numerator: 1 Choose Denominator: Total liabilities / Total assets S 216.292 / S 176,047/ Equity Ratio Choose Numerator: 1 Choose Denominator: 1 Year Ago: 0 % 1 = = Equity Ratio Equity ratio 0 % 0 % Current Year: 1 = 1 Year Ago: 1 = Required Information Exercise 13-9 Analyzing risk and capital structure LO P3 [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. Current Yr 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 $ 29,202 88,126 109,785 9,598 273,625 $518, 256 1 Yr Ago 2 Yrs Ago $ 35,894 $ 37,786 61,583 51,379 81,377 54,198 9,422 4,115 251,680 230,422 $ 439,876 $ 377,980 $123, 242 $ 72,852 $ 49,883 93,850 162,580 131,464 $518, 256 103,195 85, 186 162,5ee 162,5ee 101, 329 80, 331 $ 439,876 $ 377,988 The company's income statements for the Current Year and 1 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 Yr $663,333 $404,633 205,633 11,277 8,623 638,166 $ 33,167 $ 2.84 1 Yr Ago $ 523,452 $340, 244 132,433 12,039 7,852 492,568 $ 30,884 $ 1.99 For both the Current Year and 1 Year Ago, compute the following ratios: Exercise 13-9 Part 2 (2) Debt-to-equity ratio. Debt-To-Equity Ratio Choose Numerator: Choose Denominator: Debt-To-Equity Ratio Debt-to-equity ratio 0 to 1 1 Current Year: 1 Year Ago: 1 0 to 1
