At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total...
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At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Current Year 1 Year Ago 2 Years Ago $ 28,744 85,835 105,805 9,537 262,195 $ 33,600 59,393 80,054 8,909 242,282 $ 424,238 $ 73,130 $ 492,116 $ 124,988 Long-term notes payable Common stock, $10 par value 91,593 162,500 113,035 Total liabilities and equity $ 492,116 $ 424,238 Retained earnings 97,575 162,500 91,033 For both the current year and one year ago, compute the following ratios: $ 33,627 47,124 50,694 3,851 211,304 $ 346,600 $ 45,751 76,599 163,500 60,750 $ 346,600 Exercise 13-9 (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 (1) Debt and equity ratios. Current Year 1 Year Ago $ 639,751 $ 504,843 $ 390,248 198,323 $ 328,148 127,725 11,611 7,573 10,876 8,317 607,764 $ 31,987 $ 1.97 (2-a) Compute debt-to-equity ratio for the current year and one year ago. 475,057 $ 29,786 $ 1.83 (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 3B Compute debt and equity ratio for the current year and one year ago. Current Year: 1 Year Ago: Current Year: 1 Year Ago: Denominator: = Debt Ratio / Total assets = II Debt ratio Debt Ratio Numerator: Total liabilities Equity Ratio Numerator: Total equity = II II = 0% 0 % Denominator: / Total assets = Equity Ratio = Equity ratio = 0 % = II 0 % < Required 1 Required 2A > At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Current Year 1 Year Ago 2 Years Ago $ 28,744 85,835 105,805 9,537 262,195 $ 33,600 59,393 80,054 8,909 242,282 $ 424,238 $ 73,130 $ 492,116 $ 124,988 Long-term notes payable Common stock, $10 par value 91,593 162,500 113,035 Total liabilities and equity $ 492,116 $ 424,238 Retained earnings 97,575 162,500 91,033 For both the current year and one year ago, compute the following ratios: $ 33,627 47,124 50,694 3,851 211,304 $ 346,600 $ 45,751 76,599 163,500 60,750 $ 346,600 Exercise 13-9 (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 (1) Debt and equity ratios. Current Year 1 Year Ago $ 639,751 $ 504,843 $ 390,248 198,323 $ 328,148 127,725 11,611 7,573 10,876 8,317 607,764 $ 31,987 $ 1.97 (2-a) Compute debt-to-equity ratio for the current year and one year ago. 475,057 $ 29,786 $ 1.83 (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 3B Compute debt and equity ratio for the current year and one year ago. Current Year: 1 Year Ago: Current Year: 1 Year Ago: Denominator: = Debt Ratio / Total assets = II Debt ratio Debt Ratio Numerator: Total liabilities Equity Ratio Numerator: Total equity = II II = 0% 0 % Denominator: / Total assets = Equity Ratio = Equity ratio = 0 % = II 0 % < Required 1 Required 2A >
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Related Book For
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Posted Date:
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