Answered step by step
Verified Expert Solution
Question
1 Approved Answer
multipart please answer all 1. 2. 3. Required information Exercise 13-9 Analyzing risk and capital structure LO P3 [The following information applies to the questions
multipart please answer all
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 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 $ 35,287 105,340 128,587 11,591 317,274 $598,079 $ 42,072 $ 42,115 72,904 55,30 97,291 59,803 10,611 4,586 292,707 263,866 $ 515,585 $ 425,400 $153, 389 $ 85,391 $ 56,714 111,314 162,500 170,876 $598,079 116,213 94,954 162,500 162,500 151,481 111,232 $ 515,585 $ 425,400 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 Current Yr $777,503 $ 474,277 241,026 13,218 10, 108 738,629 $ 38,874 1 Yr Ago $ 613,546 $ 398,805 155, 227 14,112 9,203 577,347 $36,199 Earnings per share 2.39 $ 2.23 For both the Current Year and 1 Year Ago, compute the following ratios: Exercise (1) Debt and equity ratios. Debt Ratio Choose Numerator: Choose Denominator: Debt Ratio Debt ratio Current Year: / 1 Year Ago: Equity Ratio Choose Numerator: 7 Choose Denominator: Equity Ratio Equity ratio % H Current Year: 1 Year Ago: = % 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 1 Ye 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 $ 35,287 105,340 128,587 11,591 317,274 $598,079 42,072 $ 42,115 72,984 55,30 97,291 59,803 10,611 4,586 292,707 263,866 $ 515,585 $ 425,400 $153, 389 $ 85,391 $ 56,714 es 111,314 162,500 170,876 $598,079 116, 213 94,954 162,500 162,500 151,481 111,232 $ 515,585 $ 425,400 The company's income statements for the Current Year and 1 Year Ago, follow. Vie Aan mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity 111,314 162,500 170,876 $598,079 116, 213 94,954 162,500 162,500 151,481 111,232 $ 515,585 $ 425,400 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 Current Yr $777,503 $ 474,277 241, 026 13,218 10,198 738,629 $ 38,874 1 Yr Ago $ 613,546 $398,805 155,227 14,112 9,203 577,347 $36,199 Earnings per share 2.39 $ 2.23 For both the Current Year and 1 Year Ago, compute the following ratios: Earnings per share $ 2.39 $ 2.23 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 Current Year: to 1 1 Year Ago: to 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 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 $ 35,287 105,340 128,587 11,591 317,274 $598,079 $ 42,072 $ 42,115 72,984 55,030 97,291 59,803 10,611 4,586 292,707 263,866 $ 515,585 $ 425,400 $153,389 $ 85,391 $ 56,714 111,314 162,500 170,876 $598,079 116, 213 94,954 162,500 162,500 151,481 111,232 $ 515,585 $ 425,400 The company's income statements for the Current Year and 1 Year Ago, follow. Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity 111,314 162,500 170,876 $598,079 116, 213 94,954 162,500 162,500 151,481 111,232 $ 515,585 $ 425,400 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 $777,503 $ 474,277 241,026 13,218 10,108 738,629 $ 38,874 1 Yr Ago $ 613,546 $398,805 155,227 14,112 9,203 577, 347 $36,199 $ 2.23 $ 2.39 For both the Current Year and 1 Year Ago, compute the following ratios: Complete this question by entering your answers in the tabs below. Required 3A Required 3B Times interest earned. Times Interest Earned Choose Numerator: | Choose Denominator: Times Interest Earned Times interest earned = times Current Year: times 1 Year Ago: Required 3B > Required information w OSCU VI LINICS TITICICSL CONTICU, IS LIC COTPony TOIC OFICSS TISKE TOPLICUROIS THE CUITCHIL TCOI VISUSTIC Complete this question by entering your answers in the tabs below. Required 3A 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 1.
2.
3.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started