Exercise 13-10 (Static) Analyzing risk and capital structure LO P3 The following information applies to the questions displayed below . Simon Company's year-end balance sheets follow Current Yr 1 Yr Ago 2 Yrs 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 31,800 $ 35,625 $ 37,800 89,500 62,500 50,200 112,500 82,500 54,000 10,700 9,375 5,000 278,500 255,000 230,500 $523,000 $445,000 $377,500 $ 129,900 $ 75,250 $ 51,250 98,500 101,500 83,500 163,500 163,500 163,500 131,100 104,750 79,250 $ 523,000 $445,000 $ 377,500 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 Current Yr $673,500 $411,225 209,550 12,100 9,525 1 Yr Ago $532,000 $ 345,500 134,980 13,300 8,845 642,48 \$ 31,16; 502,625 \$.29,375 Earnings per share $1.90 $1.80

13 Part Tofa 0.8 points Exercise 13-10 (Static) Analyzing risk and capital structure LO P3 The following information applies to the questions displayed below) Simon Company's year end balance sheets follow At December 31 Current Y 1 Yr Ago 2 Yrs Ago Assets Cash $ 31,800 $ 35,625 5 37,800 Accounts receivable, net 89,500 62,500 58,200 Merchandise inventory 112,500 82,500 54,000 Prepaid expenses 10,700 9,375 5,000 Plant assets, net 278,500 255,200 230, 500 Total assets $523,000 $445,000 $377.500 Liabilities and Equity Accounts payable $129,900 $ 75,250 $ 51, 250 Long-term notes payable 98,500 101.500 83,500 Common stock, $10 per value 163,5ee 163,500 163,500 Retained earnings 131,180 184,750 79,250 Total liabilities and equity $523,000 445,000 $377,500 Sipped wo Hun Refrences The company's income statements for the current year and one year ago, follow. For Year Ended December 31 Current Yr 1 Yr Ago Sales $673,500 $532,000 Cost of goods sold $411,225 5345,500 Other operating expenses 289,550 134,980 Interest expense 12, 100 13,300 Income tax expense 9,525 8.845 Total costs and expenses 642,400 502,625 Net income $ 31,100 $ 29,375 Earnings per share 1.90 1.80 Exercise 13-10 (Static) Part 1 ed (1) Debt and equity ratios. Debt Ratio Choose Denominator: Choose Numerator: Debt Ratio Debt ratio 1 11 % ces Current Year: 1 Year Ago: 11 % Equity Ratio 1 Choose Denominator: Choose Numerator: Equity Ratio Equity ratio = 1 = % Current Year: 1 Year Ago: 11 Exercise 13-10 (Static) Part 2 (2) Debt-to-equity ratio Debt-To-Equity Ratio 1 Choose Denominator: Choose Numerator: 1 Debt-To-Equity Ratio Debt-to-equity ratio O to 1 Current Year: / 1 Year Ago: - O to 1 Exercise 13-10 (Static) Part 3 (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 3A Required 38 Times interest eamed. Times Interest Earnesi Choose Denominator Choose Numerator: Times interest Earned Times interest earned times Current Year: times 1 Year Ago: KODA Required 30 > Current Y 1 Yr Ago 2 Yrs 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, 518 par value Retained earnings Total liabilities and equity $ 31,800 $ 35,625 $ 37,800 89,500 62,500 50,200 112,500 82,500 54,000 10,700 9,375 5,000 278,500 255,600 239,580 $523,000 $445,000 $377,500 $129,900 $ 75,250 $ 51, 250 98,500 101,500 83,500 163,500 163,500 163,500 131, 100 104,750 79,25e $523,000 $445,000 $377,588 The company's income statements for the current year and one year ago, follow. For Year Ended December 31 Current Yr 1 Yr Ago Sales $673,500 $532,000 Cost of goods sold $411,225 $345,500 Other operating expenses 209,550 134,989 Interest expense 12,100 13,300 Income tax expense 9.525 8,845 Total costs and expenses 642,400 502,625 Net income $ 31,180 $ 29,375 Earnings per share $ 1.90 $ 1.80