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Simon Company's year - end balance sheets follow. At December 3 1 Current Year 1 Year Ago 2 Years Ago Assets Cash $ 3 0
Simon Company's yearend balance sheets follow.
At December Current Year Year Ago Years Ago
Assets
Cash $ $ $
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 companys income statements for the current year and one year ago, follow.
For Year Ended December Current Year Year Ago
Sales $ $
Cost of goods sold $ $
Other operating expenses
Interest expense
Income tax expense
Total costs and expenses
Net income $ $
Earnings per share $ $
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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