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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 | $ | 26,640 | $ | 31,139 | $ | 29,942 | |||||
Accounts receivable, net | 77,974 | 54,493 | 41,981 | ||||||||
Merchandise inventory | 95,154 | 70,583 | 45,161 | ||||||||
Prepaid expenses | 8,324 | 8,093 | 3,361 | ||||||||
Plant assets, net | 238,955 | 221,077 | 191,355 | ||||||||
Total assets | $ | 447,047 | $ | 385,385 | $ | 311,800 | |||||
Liabilities and Equity | |||||||||||
Accounts payable | $ | 112,428 | $ | 63,827 | $ | 41,981 | |||||
Long-term notes payable secured by mortgages on plant assets | 85,726 | 91,298 | 69,597 | ||||||||
Common stock, $10 par value | 162,500 | 162,500 | 162,500 | ||||||||
Retained earnings | 86,393 | 67,760 | 37,722 | ||||||||
Total liabilities and equity | $ | 447,047 | $ | 385,385 | $ | 311,800 | |||||
The companys income statements for the Current Year and 1 Year Ago, follow.
For Year Ended December 31 | Current Yr | 1 Yr Ago | ||||||||||
Sales | $ | 581,161 | $ | 458,608 | ||||||||
Cost of goods sold | $ | 354,508 | $ | 298,095 | ||||||||
Other operating expenses | 180,160 | 116,028 | ||||||||||
Interest expense | 9,880 | 10,548 | ||||||||||
Income tax expense | 7,555 | 6,879 | ||||||||||
Total costs and expenses | 552,103 | 431,550 | ||||||||||
Net income | $ | 29,058 | $ | 27,058 | ||||||||
Earnings per share | $ | 1.79 | $ | 1.67 |
(1) Debt and equity ratios. Debt Ratio Choose Numerator: 1 Choose Denominator: Debt Ratio / Debt ratio Current Year: 1 % 1 Year Ago: 1 % Equity Ratio Choose Numerator: / Choose Denominator: Equity Ratio Equity ratio / Current Year: / % 1 Year Ago: / % (2) Debt-to-equity ratio. Debt-To-Equity Ratio Choose Numerator: 1 Choose Denominator: / Debt-To-Equity Ratio Debt-to-equity ratio to 1 Current Year: 1 11 1 Year Ago: / to 1 Required 3A Required 3B Times interest earned. Times Interest Earned Choose Numerator: 1 Choose Denominator: Times Interest Earned / Times interest earned Current Year: / times 1 Year Ago: / times Required 3A Required 3B > 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
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