Simon Company's year-end balance sheets follow Current Year 1 Year Ago 2 Years Ago At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity $ 28,797 83,461 103,877 9, 180 267,692 $ 493,007 $ 33,320 60,691 79,412 8, 925 242,658 $ 425, 806 $36, 136 48,659 50,806 3,936 221,863 $361,400 $ 122,759 90,832 163,500 115,916 $ 493,007 $ 71,826 98,729 162,500 91,951 $ 425,006 $ 46,751 79,071 163,500 72,078 $ 361,400 For both the current year and one year ago, compute the following ratios: Exercise 17-9 (Algo) Analyzing risk and capital structure LO P3 The company's income statements for the current year and one year ago, follow. For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Earnings per share Current Year $ 640,909 $ 390,954 198,682 10,895 8,332 608,863 $ 32,046 $ 1.97 1 Year Ago $ 505,757 $ 328, 742 127,957 11,632 7,586 475,917 $ 29,840 $ 1.84 Required information (1) Debt and equity ratios. (2-a) Compute debt to equity ratio for the current year and one year ago (2-6) Based on debt-to-equity ratio, does the company have more or less debt in the current year versus one year ago? (3-0) Times interest eamed. (3-b) Based on times Interest earned, is the company more or less risky for creditors in the Current Year versus 1 Year Ago? Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 20 Required 3A Required 38 Compute debt and equity ratio for the current year and one year ago Debt Ratio Numerator Denominator: Debt Ratio Debt ratio Current Year 1 Year Ago: Equity Ratio Numerator Denominator: Equity Ratio Equity ratio Current Year: 1 Year Ago Required information (3-0) Times Interest earned, (3-b) Based on times interest earned, is the company more or less risky for creditors in the Current Year versus 1 Year Ago? Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 28. Required 3A Required 3 Compute debt-to-equity ratio for the current year and one year ago Debt-To-Equity Ratio Numerator: Denominator Debt-To-Equity Ratio Debt-to-equity ratio to 1 to 1 Current Year 1 Year Ago: (1) Debt and equity ratios. (2-a) Compute debt-to-equity ratio for the current year and one year ago (2-6) Based on debt-to-equity ratio, does the company have more or less debt in the current year versus one year ago? (3-0) Times interest earned. (3-6) Based on times interest earned, is the company more or less risky for creditors in the Current Year versus 1 Year Ago? Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 28 Required JA Required 38 Based on debt-to-equity ratio, does the company have more or less debt in the current year versus one year ago Based on debt to equity ratio, the company has debt in the current year versus one year ago (1) Debt and equity ratios (2-6) Compute debt-to-equity ratio for the current year and one year ago (2.b) Based on debt to-equity ratio, does the company have more or less debt in the current year versus one year ago? (3-a) Times interest earned (3-6) Based on times interest camned, is the company more or less risky for creditors in the Current Year versus 1 Year Ago? Complete this question by entering your answers in the tabs below. Required: Required 2A Required 20 Required A Begured 38 Compute times interest earned for the current year and one year ago Times Interested Numerator Denominator Tintes internat Earned Teresa Current Year 1 Year Ago (1) Debt and equity ratios. (2-0) Compute debt-to-equity ratio for the current year and one year ago (2-6) Based on debt-to-equity ratio, does the company have more or less debt in the current year versus one year ago? (3-6) Times interest earned. (3-b) Based on times interest earned, is the company more or less risky for creditors in the Current Year versus 1 Year Ago? Complete this question by entering your answers in the tabs below. es Required 2A Required 20 Required 1 Required 3A Required 3B Based on times interest earned, is the company more or less risky for creditors in the Current Year versus 1 Year Ago? Based on times interest eamed, the company is for creditors in the current year versus one year ago
