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Required information Exercise 13-9 Analyzing risk and capital structure LO P3 [The following information applies to the questions displayed below.] Simon Companys year-end balance sheets
Required information
Exercise 13-9 Analyzing risk and capital structure LO P3
[The following information applies to the questions displayed below.] Simon Companys year-end balance sheets follow.
At December 31 | Current Yr | 1 Yr Ago | 2 Yrs Ago |
Assets | |||
Cash | 36,194 | 43,603 | 43,630 |
Accounts receivable, net | 103,832 | 76,305 | 58,767 |
Merchandise inventory | 137,278 | 100,832 | 65,135 |
Prepaid expenses | 11,656 | 11,332 | 4,897 |
Plant assets, net | 337,022 | 307,568 | 277,271 |
Total assets | 625,982 | 539,640 | 449,700 |
Liabilities and Equity | |||
Accounts payable | 158,987 | 89,375 | 57,580 |
Long-term notes payable secured by mortgages on plant assets | 116,508 | 122,876 | 98,390 |
Common stock, $10 par value | 162,500 | 162,500 | 162,500 |
Retained earnings | 187,987 | 164,889 | 131,230 |
Total liabilities and equity | 625,982 | 539,640 | 449,700 |
The companys income statements for the Current Year and 1 Year Ago, follow.
For Year Ended December 31 | Current Yr | 1 Yr Ago | ||
Sales | 813,777 | 642,172 | ||
Cost of goods sold | 496,404 | 417,412 | ||
Other operating expenses | 252,271 | 162,470 | ||
Interest expense | 13,834 | 14,770 | ||
Income tax expense | 10,579 | 9,633 | ||
Total costs and expenses | 773,088 | 604,285 | ||
Net income | 40,689 | 37,887 | ||
Earnings per share | 2.50 | 2.33 |
For both the Current Year and 1 Year Ago, compute the following ratios:
Exercise 13-9 Part 1
(1) Debt and equity ratios.
** There is no incomplete sentences
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