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Required information [The following information applies to the questions displayed below.] Simon Companys year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago
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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 | $ | 34,590 | $ | 39,647 | $ | 41,291 | |||||
Accounts receivable, net | 100,251 | 69,382 | 55,054 | ||||||||
Merchandise inventory | 119,928 | 91,684 | 57,483 | ||||||||
Prepaid expenses | 10,598 | 10,201 | 4,498 | ||||||||
Plant assets, net | 303,822 | 279,766 | 250,574 | ||||||||
Total assets | $ | 569,189 | $ | 490,680 | $ | 408,900 | |||||
Liabilities and Equity | |||||||||||
Accounts payable | $ | 138,893 | $ | 85,413 | $ | 53,975 | |||||
Long-term notes payable secured by mortgages on plant assets | 108,078 | 111,728 | 88,560 | ||||||||
Common stock, $10 par value | 162,500 | 162,500 | 162,500 | ||||||||
Retained earnings | 159,718 | 131,039 | 103,865 | ||||||||
Total liabilities and equity | $ | 569,189 | $ | 490,680 | $ | 408,900 | |||||
The companys income statements for the Current Year and 1 Year Ago, follow.
For Year Ended December 31 | Current Yr | 1 Yr Ago | ||||||||||
Sales | $ | 739,946 | $ | 583,909 | ||||||||
Cost of goods sold | $ | 451,367 | $ | 379,541 | ||||||||
Other operating expenses | 229,383 | 147,729 | ||||||||||
Interest expense | 12,579 | 13,430 | ||||||||||
Income tax expense | 9,619 | 8,759 | ||||||||||
Total costs and expenses | 702,948 | 549,459 | ||||||||||
Net income | $ | 36,998 | $ | 34,450 | ||||||||
Earnings per share | $ | 2.28 | $ | 2.12 | ||||||||
For both the Current Year and 1 Year Ago, compute the following ratios:
(1) Debt and equity ratios.
Debt Ratio Choose Numerator: Choose Denominator: II Debt Ratio Debt ratio Current Year: / / / II % 1 Year Ago: II % Equity Ratio Choose Numerator: Choose Denominator: - = Equity Ratio Equity ratio % = Current Year: II 1 / 1 Year Ago: %
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