Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-tere notes payable. Common stock, $10 par value Retained earnings Total liabilities and equity Current Year $ 32,742 92,050 120,508 10,650 299,003 $ 554,9531 Interest expense Income tax expense Total costs and expenses Net income Earnings per share $ 139,565 106,418 162,500 146,470 $ 554,953 Current Year 1 Year Ago $ 440,078 223,646 12,264 9,379 $37,890 68,317 90,276 9,745 272,180 $ 478,408 $ 81,659 113,335 162,500 120,914 $ 478,408 The company's income statements for the current year and one year ago, follow. 1 Year Ago. For Year Ended December 31 Sales Cost of goods sold Other operating expenses $ 721,439 685,367 $ 36,072 $ 2.22 2 Years Ago $ 40,266 54,751 56,612 4,297 246,774 $ 402,700 8 $ 52,625 89,887 162,500 97,688 $ 402,700 $ 370,049 144,034 13,094 8,540 $ 569,306 535,717 $ 33,589 $2.07 (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? Exercise 13-9 (Algo) Part 3 [Alternate Version] (3-a) Compute times interest earned for the current year and one year ago. (3-b) Based on times interest earned, is the company more or less risky for creditors in the Current Year versus 1 Year Ago? Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-tere notes payable. Common stock, $10 par value Retained earnings Total liabilities and equity Current Year $ 32,742 92,050 120,508 10,650 299,003 $ 554,9531 Interest expense Income tax expense Total costs and expenses Net income Earnings per share $ 139,565 106,418 162,500 146,470 $ 554,953 Current Year 1 Year Ago $ 440,078 223,646 12,264 9,379 $37,890 68,317 90,276 9,745 272,180 $ 478,408 $ 81,659 113,335 162,500 120,914 $ 478,408 The company's income statements for the current year and one year ago, follow. 1 Year Ago. For Year Ended December 31 Sales Cost of goods sold Other operating expenses $ 721,439 685,367 $ 36,072 $ 2.22 2 Years Ago $ 40,266 54,751 56,612 4,297 246,774 $ 402,700 8 $ 52,625 89,887 162,500 97,688 $ 402,700 $ 370,049 144,034 13,094 8,540 $ 569,306 535,717 $ 33,589 $2.07 (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? Exercise 13-9 (Algo) Part 3 [Alternate Version] (3-a) Compute times interest earned for the current year and one year ago. (3-b) Based on times interest earned, is the company more or less risky for creditors in the Current Year versus 1 Year Ago?
Expert Answer:
Related Book For
College Accounting A Practical Approach Chapters 1-25
ISBN: 9780133791006
13th Edition
Authors: Jeffrey Slater
Posted Date:
Students also viewed these accounting questions
-
Inventory turnover is calculated as cost of goods sold divided by ending inventory . 1. True 2. False
-
Cost of goods sold is shown as a distinct line item on the income statement. Where is information related to cost of goods sold shown on the statement of cash flows under both the direct and indirect...
-
The Robinson Company had a cost of goods sold of $1,000,000 in 2014 and $1,200,000 in 2015. a. Calculate the inventory turnover for each year. Comment on your findings. b. What would have been the...
-
SQL database the yellow box is the Order data mentioned in the Q CoursHeroTranscribedText Orders (cust, date, proc, memory, hd, od, quant, price) Exercise 7.4: In Exercise 6.1 we spoke of PC-order...
-
With the multinational company (MNC) becoming a significant business structure throughout the world, a growing problem is developing in the analysis of the MNC's financial results. When the incidents...
-
Chee purchases Tan, Inc. bonds for $108,000 on January 2, 2016. The face value of the bonds is $100,000; the maturity date is December 31, 2020; and the annual interest rate is 5%. Chee will amortize...
-
Stakeholders views. Broken Hill Proprietary Co. Ltd (BHP). BHP is an Australian-based global mineral resources company. A tailings dam constructed at the Ok Tedi copper and gold mine in Papua New...
-
Company P purchased an 80% interest (8,000 shares) in Company S for $800,000 on January 1, 2011. Company Ss equity on that date was $900,000. Any excess of cost over book value was attributed to...
-
Simu buys a Rolex watch from Erik, his next-door neighbor. The watch appears gold in color and the watch face is encrusted with diamonds. In an email to Simu, Erik stated he paid $25,000 for the...
-
You will need to adapt the configuration on both Newton and Einstein and configure the Heisenberg and Schrodinger switches to complete this task. You will need to VLSM the network, to ensure that...
-
Charles has decided to open a lawn-mowing company. To do so, he purchases mowing equipment for $5,000, buys gasoline ($2.30 in gas is required to mow each yard), and pays a helper $10.00 per yard....
-
On January 8, the end of the first weekly pay period of the year, Regis Company's employees earned $25,760 of office salaries and $60,840 of sales salaries. Withholdings from the employees' salaries...
-
Let be an alphabet. The symmetric difference of two languages A, B C * is defined as AAB = (ANB) U (ANB). (a) Prove that if A C* is a context-free language and BC * is a finite language, the the...
-
The pressure relief valve in your hot water heater (sizedesignation: Type G) has an orifice area of 0.503 in2 . It is setto open and relieve the pressure in the heater if it 23 reaches 150psi. The...
-
3- Imagine a system that has n processes and a resource with m identical units. The maximum claim of any process is k. a. Why is the system deadlock free for all possible states of m>n (k-1)? (1...
-
How do implicit cognitive biases and stereotyping manifest in organizational decision-making processes, and what mechanisms can be employed to mitigate their impact ?
-
Indicate what would be output to the console when the following code fragment is executed. public class Foo { } public static int num = 5; public Foo (int x) { num = x; } public static void main...
-
On October 1, 2014, the Dow Jones Industrial Average (DJIA) opened at 17,042 points. During that day it lost 237 points. On October 2 it lost 4 points. On October 3 it gained 209 points. Deter-mine...
-
Complete the following table for Sales, Sales Returns and Allowances, and SalesDiscounts. Accounts Affected Rules to Increase Account Temporary or Permanent Category
-
Indicate what effects (#1-4) each situation (#a-f) will have. (Note: There might be more than one effect applicable for a situation.) 1. New check written. 2. Recorded in general journal. 3. Petty...
-
Go to the consolidated balance sheet in the 2013 annual report for Kelloggs Company at http://investor.kelloggs.com/investor-relations/annual-reports. What is the amount of retained earnings in 2013?...
-
Restore the file Drone City Ch 12 (Backup) that you downloaded from the student companion site and then do the following like you did in the chapter: Create a new client in the Fixed Asset Manager...
-
When is the Fixed Asset Manager synchronized with the fixed asset list?
-
What information is provided by the Fixed Asset Managers Depreciation Schedule by G/L Account Number report?
Study smarter with the SolutionInn App