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Required information Skip to question [The following information applies to the questions displayed below.] Simon Companys year-end balance sheets follow. At December 31 Current Yr
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[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 | $ | 24,872 | $ | 29,073 | $ | 30,890 | |||||
Accounts receivable, net | 72,086 | 51,895 | 39,975 | ||||||||
Merchandise inventory | 88,821 | 65,886 | 43,003 | ||||||||
Prepaid expenses | 8,250 | 7,861 | 3,466 | ||||||||
Plant assets, net | 227,525 | 208,694 | 188,566 | ||||||||
Total assets | $ | 421,554 | $ | 363,409 | $ | 305,900 | |||||
Liabilities and Equity | |||||||||||
Accounts payable | $ | 108,116 | $ | 62,644 | $ | 40,783 | |||||
Long-term notes payable secured by mortgages on plant assets | 80,045 | 82,748 | 67,604 | ||||||||
Common stock, $10 par value | 162,500 | 162,500 | 162,500 | ||||||||
Retained earnings | 70,893 | 55,517 | 35,013 | ||||||||
Total liabilities and equity | $ | 421,554 | $ | 363,409 | $ | 305,900 | |||||
The companys income statements for the Current Year and 1 Year Ago, follow.
For Year Ended December 31 | Current Yr | 1 Yr Ago | ||||||||||
Sales | $ | 548,020 | $ | 432,457 | ||||||||
Cost of goods sold | $ | 334,292 | $ | 281,097 | ||||||||
Other operating expenses | 169,886 | 109,412 | ||||||||||
Interest expense | 9,316 | 9,947 | ||||||||||
Income tax expense | 7,124 | 6,487 | ||||||||||
Total costs and expenses | 520,618 | 406,943 | ||||||||||
Net income | $ | 27,402 | $ | 25,514 | ||||||||
Earnings per share | $ | 1.69 | $ | 1.57 | ||||||||
For both the Current Year and 1 Year Ago, compute the following ratios:
(1) Debt and equity ratios.
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