Refer to the Simon Company information in Exercises 17-7 and 17-9. Compare the companys long- term risk
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In Exercise 17-7, Simon Companys year-end balance sheets follow. Express the balance sheets in common- size percents. Round amounts to the nearest one- tenth of a percent.
In Exercise 17-9, The companys income statements for the years ended December 31, 2014 and 2013 follow. Assume that all sales are on credit and then compute:
(1) Debt and equity ratiospercent rounded to one decimal,
(2) Debt-to-equity ratiorounded to two decimals,
(3) Times interest earnedrounded to one decimal. Comment on these ratioresults.
Capital structure refers to a company’s outstanding debt and equity. The capital structure is the particular combination of debt and equity used by a finance its overall operations and growth. Capital structure maximizes the market value of a...
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Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
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