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[The following information applies to the questions displayed below) Simon Company's year-end balance sheets follow, Current Ye At December 31 Assets Cash Accounts receivable, net

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[The following information applies to the questions displayed below) Simon Company's year-end balance sheets follow, Current Ye 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 secured by mortgages on plant assets Common stock, 510 par value Retained earnings Total liabilities and equity $36,262 109,345 137.400 11,913 325,318 3620,818 1 Yr Ago 2 Yes 5 41,959 $ 43,724 73,428 57.156 98,020 63,331 11,239 310.542 263,978 $ 535,138 5.433,000 $153,638 590,447 $ 55, 441 117,881 162,500 187399 $620,818 121,862 96.650 162,500 162.500 160.279 118,409 $ 535,158 5 433.000 The company's income statements for the Current Year and 1 Year Ago follow. For Year Ended December 31 Current 1 yr ago Sales 3507,063 $636,874 Cost of goods sold $492,308 5413,963 Other operating expenses 250, 190 161,129 Interest expense 13,720 14,648 Income tax expense 10,492 9,553 Total costs and expenses 766,710 599,298 Net income $ 40,353 $ 37.526 Earnings per share 5 2.48 5 2.31 For both the Current Year and 1 Year Ago, compute the following ratios. (1) Debt and equity ratios For both the Current Year and 1 Year Ago, compute the following ratios: (1) Debt and equity ratios. Debt Ratio Choose Numerator: 1 Choose Denominator: Debt Ratio Debt ratio / Current Year: 1 Year Ago: % % Equity Ratio 7 Choose Nurnerator: Choose Denominator: - Equity Ratio Equity ratio 1 / % Current Year: 1 Year Ago: 1 % For both the Current Year and 1 Year Ago, compute the following ratios: (2) Debt-to-equity ratio. Debt To Equity Ratio Choose Numerator: 1 Choose Denominator: = Debt-To Equity Ratio Debt-to-equity ratio 0 to 1 Current Year: 1 Year Ago: oto 1 For both the Current Year and 1 Year Ago, compute the following ratios: (3-6) 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 3A Required 38 Times interest earned Times Interest Eated Denominator Choose Numerator: Times Interest Earned Times Interest eamed times times Current Year: 1 Year Ago: ged Required 38 )

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