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 $ 34,749 99,695 130,464 11,190 318,813 $ 594,911 $ 40,618 73,954 93,929 10,985 293, 368 $ 512,854 $ 42,742 56,990 60,688 4,749 270,931 $ 436,100 $ 145,170 108,488 162,500 178,753 $ 594,911 $ 87,539 116,777 163,500 145,038 $ 512,854 $ 55,838 98,306 163,500 118,456 S436.100 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 Coot of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Current Year $ 773,384 $ 471, 764 239, 749 13,148 10,054 734,715 1 Year Ago $ 610,296 $ 396,692 154,405 14,037 9,154 574,288 For Year Ended December 31 Sales Coat of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Earnings per share Current Year $ 773,384 $ 471,764 239, 749 13,148 10.054 734,715 $ 38,669 $ 2.38 1 Year ago $ 610,296 $ 396,692 154,405 14,037 9,154 574,288 $ 36,008 $ 2.22 (1) Debt and equity ratios. (2-a) 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-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 2B Required 3A Required 38 Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Required 3A Required 3B Compute debt and equity ratio for the current year and one year ago Debt Ratio Numerator: Denominator: Debt Ratio Debt ratio Current Year: # 0 % 0 % 1 Year Ago: Numerator: Equity Ratio 7 / Denominator: Equity Ratio Equity ratio 0 % Current Year: 4 Van Ant # ol % Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Required 3A Required 3B Compute debt-to-equity ratio for the current year and one year ago Numerator: Debt-To-Equity Ratio Denominator: 1 Debt-To-Equity Ratio Debt-to-equity ratio 0 to 1 Current Year: 1 1 1 Year Ago: 1 0 to 1 Complete this question by entering your answers in the tabs below. Assessment Tool Frame Required 1 Required 2A Required 28 Required 3A Required 38 Compute times interest eamed for the current year and one year ago Times Interest Earned Numerator Denominator: 1 Times Interest Eamed Times Interest med o times - 1 Current Year: 1 Year Ago: Osimes
