Required information The following information applies to the questions displayed,below. ] Simon Company's year - end balance
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Required information
The following information applies to the questions displayed,below.
Simon Company's yearend balance sheets follow.
tableAt December Current Year,Year Ago, Years AgoAssetsCash$$Accounts receivable, net,Merchandise inventory,Prepaid expenses,Plant assets, net,Total assets,$$$Liabilities and Equity,,,,Accounts payable,$$Longterm notes payable,Common stock, $ par value,Retained earnings,Total liabilities and equity,$$$
For both the current year and one year ago, compute the following ratios:
The company's income statements for the current year and one year ago, follow.
Debt and equity ratios.
a Compute debttoequity ratio for the current year and one year ago.
b Based on debttoequity ratio, does the company have more or less debt in the current year versus one year ago?
a Times interest earned.
b Based on times interest earned, is the company more or less risky for creditors in the Current Year versus Year Ago?
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Compute debt and equity ratio for the current year and one year ago.
tableDebt RatioNumerator:,Denominator:,Debt RatioDebt ratioCurrent Year:,,
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