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Simon Companys year-end balance sheets follow. At December 31 Current Year 1 Year Ago 2 Years Ago Assets Cash $ 26,099 $ 30,507 $ 33,758
Simon Companys year-end balance sheets follow.
At December 31 | Current Year | 1 Year Ago | 2 Years Ago |
---|---|---|---|
Assets | |||
Cash | $ 26,099 | $ 30,507 | $ 33,758 |
Accounts receivable, net | 74,871 | 54,478 | 43,686 |
Merchandise inventory | 98,018 | 71,268 | 46,996 |
Prepaid expenses | 8,491 | 7,926 | 3,641 |
Plant assets, net | 243,906 | 224,946 | 206,219 |
Total assets | $ 451,385 | $ 389,125 | $ 334,300 |
Liabilities and Equity | |||
Accounts payable | $ 112,395 | $ 65,105 | $ 43,686 |
Long-term notes payable | 86,558 | 91,289 | 73,141 |
Common stock, $10 par value | 162,500 | 162,500 | 162,500 |
Retained earnings | 89,932 | 70,231 | 54,973 |
Total liabilities and equity | $ 451,385 | $ 389,125 | $ 334,300 |
The companys income statements for the current year and one year ago, follow.
For Year Ended December 31 | Current Year | 1 Year Ago | ||
---|---|---|---|---|
Sales | $ 586,801 | $ 463,059 | ||
Cost of goods sold | $ 357,949 | $ 300,988 | ||
Other operating expenses | 181,908 | 117,154 | ||
Interest expense | 9,976 | 10,650 | ||
Income tax expense | 7,628 | 6,946 | ||
Total costs and expenses | 557,461 | 435,738 | ||
Net income | $ 29,340 | $ 27,321 | ||
Earnings per share | $ 1.81 | $ 1.68 |
For both the current year and one year ago, compute the following ratios:
(2) Compute debt-to-equity ratio for the current year and one year ago.
\begin{tabular}{|l|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Debt-To-Equity Ratio } & \multicolumn{2}{|c|}{} \\ \hline & Numerator: & 1 & Denominator: & = & Debt-To-Equity Ratio \\ \hline & & 1 & & = & Debt-to-equity ratio \\ \hline Current Year: & & 1 & & = & 0 to 1 \\ \hline 1 Year Ago: & & 1 & & = & 0 to 1 \\ \hline \end{tabular}Step by Step Solution
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