Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

nework i Saved ! Required information Exercise 13-9 Analyzing risk and capital structure LO P3 [The following information applies to the questions displayed below.] Simon

image text in transcribed
image text in transcribed
image text in transcribed
nework i Saved ! 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. At December 31 1 Yr Ago 2 Yrs Ago Current Yr Assets Cash $ 26,696 $ 31,520 56,264 75,078 8,109 223,035 $ 31,868 42,491 46,167 3,470 197,904 Accounts receivable, net Merchandise inventory Prepaid expenses 78,155 97,282 8,858 246,056 Plant assets, net Total assets $ 394,006 $ 321,900 $457,047 Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings $ 65,255 $ 43,766 $114,943 85,066 162,500 94,538 92,434 162,500 73,817 71,851 162,500 43,783 $ 394,006 $ 321,900 Total liabilities and equity $457,047 %24 The company's income statements for the Current Year and 1 Year Ago, follow. 1 Yr Ago $ 468,867 For Year Ended December 31 Current Yr $594,161 Sales ( Prev 4 of 6 Next > ework i Saved Total liabilities and equity $ 394,006 $ 321,900 $457,047 The company's income statements for the Current Year and 1 Year Ago, follow. For Year Ended December 31 1 Yr Ago $ 468,867 Current Yr Sales $594,161 Cost of goods sold Other operating expenses Interest expense $362,438 184,190 $304,764 118,623 10,784 7,033 10,101 Income tax expense Total costs and expenses 7,724 564,453 441,204 $ 27,663 $ 29,708 Net income Earnings per share 1.83 2$ 1.70 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 Choose Numerator: Choose Denominator: Debt Ratio Total liabilities Total assets Debt ratio 4 of 6 omework 1 Saved Hel 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 Choose Numerator: Choose Denominator: Debt Ratio %3D I Total assets Total liabilities Debt ratio 457,047 = 394,006 = Current Year: 1 Year Ago: 2$ Equity Ratio Choose Denominator: Choose Numerator: Equity Ratio Total assets Total equity Equity ratio 457,047 = 394,006 = Current Year: 1 Year Ago: Next > ( Prev 4 of 6 I3D I3D

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Tools For Business Decision Making

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

6th Edition

111919167X, 9781119191674

More Books

Students also viewed these Accounting questions

Question

What is the secondary purpose of this message

Answered: 1 week ago