Required information Exercise 13-9 (Algo) Analyzing risk and capital structure LO P3 [Alternate Version] [The following...

Transcribed Image Text:

Required information Exercise 13-9 (Algo) Analyzing risk and capital structure LO P3 [Alternate Version] [The following information applies to the questions displayed below.] 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-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity Current Year 1 Year Ago 2 Years Ago $ 30,201 87,533 112,302 10,024 282,276 $ 522,336 $128,761 98,199 $ 36,023 64,932 81,638 9,362 258,335 $ 450,290 $ 77,621 104,602 162,500 105,567 162,500 132,876 $ 522,336 $ 450,290 $ 38,286 51,554 55,459 4,128 233,473 $ 382,900 $ 49,532 87,160 162,500 83,708 $ 382,900 The company's income statements for the current year and one year ago, follow. For Year Ended December 31 Sales Cost of goods sold Interest expense Income tax expense Other operating expenses Total costs and expenses Net income Earnings per share Current Year $679,037 $ 414,213 1 Year Ago $ 535,845 210,501 11,544 8,827 645,085 $ 33,952 $ 2.09 $ 348,299 135,569 12,324 8,038 504,230 $ 31,615 $ 1.95 rcise 13-9 (Algo) Part 1 [Alternate Version] 1 Year Ago $ 535,845 $ 679,037 $348,299 For Year Ended December 31 Sales Cost of goods sold Current Year $414,213 Other operating expenses 210,501 Interest expense 11,544 Income tax expense 8,827 Total costs and expenses Net income Earnings per share 645,085 $ 33,952 $ 2.09 135,569 12,324 8,038 504,230 $ 31,615 $ 1.95 Exercise 13-9 (Algo) Part 1 [Alternate Version] (1) Compute debt and equity ratio for the current year and one year ago. Debt Ratio Numerator: Cost of goods sold Denominator: Net sales Current Year: Debt Ratio Debt ratio 0% 1 Year Ago: 0% Equity Ratio Numerator: Denominator: Equity Ratio Equity ratio Current Year: 1 Year Ago: 0% / 0% ok nt nces (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? Complete this question by entering your answers in the tabs below. Required 2A Required 28 Compute debt-to-equity ratio for the current year and one year ago. Current Year: 1 Year Ago: Numerator: Debt-To-Equity Ratio ' Denominator: Required 2A = Debt-To-Equity Ratio Debt-to-equity ratio Required 28 > 0491 0 to 1 (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? Complete this question by entering your answers in the tabs below. Required 3A Required 3B Compute times interest earned for the current year and one year ago. Current Year: 1 Year Ago: Times Interest Earned Numerator: Denominator: Times Interest Earned Times interest earned times times Required SA Required 3B > (1-a) Compute profit margin ratio for the current year and one year ago. (1-b) Did profit margin improve or worsen in the Current Year versus 1 Year Ago? Complete this question by entering your answers in the tabs below. Required 1A Required 1B Compute profit margin ratio for the current year and one year ago. Current Year: 1 Year Ago: Numerator: Profit Margin Ratio Denominator: Profit Margin Ratio = Profit margin ratio = % = % KI Required 1A Required 18 > (2) Compute total asset turnover for the current year and one year ago. Total Asset Turnover Current Year: 1 Year Ago: Numerator: Denominator: Total Asset Turnover = Total asset turnover = = times Required information Exercise 13-9 (Algo) Analyzing risk and capital structure LO P3 [Alternate Version] [The following information applies to the questions displayed below.] 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-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity Current Year 1 Year Ago 2 Years Ago $ 30,201 87,533 112,302 10,024 282,276 $ 522,336 $128,761 98,199 $ 36,023 64,932 81,638 9,362 258,335 $ 450,290 $ 77,621 104,602 162,500 105,567 162,500 132,876 $ 522,336 $ 450,290 $ 38,286 51,554 55,459 4,128 233,473 $ 382,900 $ 49,532 87,160 162,500 83,708 $ 382,900 The company's income statements for the current year and one year ago, follow. For Year Ended December 31 Sales Cost of goods sold Interest expense Income tax expense Other operating expenses Total costs and expenses Net income Earnings per share Current Year $679,037 $ 414,213 1 Year Ago $ 535,845 210,501 11,544 8,827 645,085 $ 33,952 $ 2.09 $ 348,299 135,569 12,324 8,038 504,230 $ 31,615 $ 1.95 rcise 13-9 (Algo) Part 1 [Alternate Version] 1 Year Ago $ 535,845 $ 679,037 $348,299 For Year Ended December 31 Sales Cost of goods sold Current Year $414,213 Other operating expenses 210,501 Interest expense 11,544 Income tax expense 8,827 Total costs and expenses Net income Earnings per share 645,085 $ 33,952 $ 2.09 135,569 12,324 8,038 504,230 $ 31,615 $ 1.95 Exercise 13-9 (Algo) Part 1 [Alternate Version] (1) Compute debt and equity ratio for the current year and one year ago. Debt Ratio Numerator: Cost of goods sold Denominator: Net sales Current Year: Debt Ratio Debt ratio 0% 1 Year Ago: 0% Equity Ratio Numerator: Denominator: Equity Ratio Equity ratio Current Year: 1 Year Ago: 0% / 0% ok nt nces (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? Complete this question by entering your answers in the tabs below. Required 2A Required 28 Compute debt-to-equity ratio for the current year and one year ago. Current Year: 1 Year Ago: Numerator: Debt-To-Equity Ratio ' Denominator: Required 2A = Debt-To-Equity Ratio Debt-to-equity ratio Required 28 > 0491 0 to 1 (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? Complete this question by entering your answers in the tabs below. Required 3A Required 3B Compute times interest earned for the current year and one year ago. Current Year: 1 Year Ago: Times Interest Earned Numerator: Denominator: Times Interest Earned Times interest earned times times Required SA Required 3B > (1-a) Compute profit margin ratio for the current year and one year ago. (1-b) Did profit margin improve or worsen in the Current Year versus 1 Year Ago? Complete this question by entering your answers in the tabs below. Required 1A Required 1B Compute profit margin ratio for the current year and one year ago. Current Year: 1 Year Ago: Numerator: Profit Margin Ratio Denominator: Profit Margin Ratio = Profit margin ratio = % = % KI Required 1A Required 18 > (2) Compute total asset turnover for the current year and one year ago. Total Asset Turnover Current Year: 1 Year Ago: Numerator: Denominator: Total Asset Turnover = Total asset turnover = = times