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Simon Companys year-end balance sheets follow. At December 31 Current Year 1 Year Ago 2 Years Ago Assets Cash $ 36,393 $ 40,062 $ 44,765
Simon Companys year-end balance sheets follow.
At December 31 | Current Year | 1 Year Ago | 2 Years Ago |
---|---|---|---|
Assets | |||
Cash | $ 36,393 | $ 40,062 | $ 44,765 |
Accounts receivable, net | 102,406 | 73,000 | 57,948 |
Merchandise inventory | 126,181 | 95,509 | 62,961 |
Prepaid expenses | 11,151 | 10,950 | 4,877 |
Plant assets, net | 322,735 | 296,743 | 268,449 |
Total assets | $ 598,866 | $ 516,264 | $ 439,000 |
Liabilities and Equity | |||
Accounts payable | $ 149,118 | $ 86,376 | $ 56,210 |
Long-term notes payable | 112,587 | 122,303 | 94,108 |
Common stock, $10 par value | 162,500 | 162,500 | 162,500 |
Retained earnings | 174,661 | 145,085 | 126,182 |
Total liabilities and equity | $ 598,866 | $ 516,264 | $ 439,000 |
The companys income statements for the current year and one year ago, follow.
For Year Ended December 31 | Current Year | 1 Year Ago | ||
---|---|---|---|---|
Sales | $ 778,526 | $ 614,354 | ||
Cost of goods sold | $ 474,901 | $ 399,330 | ||
Other operating expenses | 241,343 | 155,432 | ||
Interest expense | 13,235 | 14,130 | ||
Income tax expense | 10,121 | 9,215 | ||
Total costs and expenses | 739,600 | 578,107 | ||
Net income | $ 38,926 | $ 36,247 | ||
Earnings per share | $ 2.40 | $ 2.23 |
For both the current year and one year ago, compute the following ratios:
(1) Compute debt and equity ratio for the current year and one year ago.
(2) Compute debt-to-equity ratio for the current year and one year ago.
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