Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please answer for a thumbs up. thanks Required information Exercise 13-9 (Algo) Analyzing risk and capital structure LO P3 (Alternate Version) [The following information applies

please answer for a thumbs up. thanks
image text in transcribed
image text in transcribed
image text in transcribed
Required information Exercise 13-9 (Algo) Analyzing risk and capital structure LO P3 (Alternate Version) [The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. Current Year 1 Year ago 2 Years ago At December 31 Assets Canh Accounts receivable, pot Merchandise inventory Prepaid expenses Plant annets, net Total auto Liabilities and Equity Accounts payable Long-term notos payable Common stock, $10 par value Retained earnings Total liabilities and equity $ 33,640 93,676 123,789 10,833 297.056 $ 558,994 $ 37,395 68,814 89,150 10,322 276,210 $ 481,891 $ 39,362 53,008 56, 459 4,417 244,354 $ 397,600 $ 137,798 106, 142 162,500 152.554 $ 558,994 $ 80,625 108,618 162,500 130,148 $ 481,891 $ 52,483 85,234 162,500 97.383 $.397,600 The company's income statements for the current year and one year ago, follow For Year Unded December 31 Current Year 1 Year ago Sales $ 726,692 $ 573,450 Cont of goods sold $ 443,282 $ 372,743 Other operating expenses 225, 275 145,033 Interest expenso 12,354 13, 189 Income tax expense 9,447 8,602 Total costs and expenses 690.358 539,617 Net income $ 36,334 $ 33,833 Earnings per share $ 2.24 $ 2.08 Exercise 13-9 (Algo) Part 3 (Alternate Version] (3-a) Compute times interest earned for the current year and one year ago (3-6) 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 3A Required 38 Compute times interest earned for the current year and one year ago. Times interest Earned Numerator Denominator Times Interested Times interest earned Current Year 1 Year Ago times mes Required 38 ) (3-a) Compute times interest earned for the current year and one year ago (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 3A Required 38 Based on times interest earned, is the company more or less risky for creditors in the Current Year versus 1 Year Ago? Based on times interest earned, the company is for creditors in the current year versus one year ago

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Financial and Managerial Accounting Using Excel for Success

Authors: James Reeve, Carl S. Warren, Jonathan Duchac

1st edition

1111535221, 1111535223, 9781285400914 , 978-1111993979

Students also viewed these Accounting questions

Question

Question

Answered: 1 week ago