Score

Exercise $17\mathrm{.}6$

Simon Company's year$-$end balance sheets follow. $(1)$ Express the balance sheets in common$-$size percents. Round percents to one decimal. $(2)$ Assuming annual sales have not changed in the last three years, is the change in accounts receivable as a percentage of total assets favorable or unfavorable? $(3)$ Is the change in merchandise inventory as a percentage of total assets favorable or unfavorable?

Question $1$

Question $2$ unfororable

Q vestion $3$ Unfororable

Refer to the Simon Company information in Exercises $17-6$ and $17-8.$ For both the current year and one

year ago, compute the following ratios: $(1)$ debt ratio and equity ratio$-$percent rounded to one decimal,

$(2)$ debt$-$to$-$equity ratio$-$rounded to two decimals; based on debt$-$to$-$equity ratio, does the company

have more or less debt in the current year versus one year ago? and $(3)$ times interest earned$-$rounded

to one decimal. Based on times interest earned, is the company more or less risky for creditors in the

current year versus one year ago?

Current

$1$ Year AGO

Debt Ratio

EQuity Ratio

Debt to EQvity Ratio

times Interest Earned

Does tite Company have mare ar less bebt based on the

Debi to EQuity Ratio In the current Year than it Did

one year AGO?

Based on times Interest Earned, Is the company more or

Less Risky to creditars in the current yeur thean it luas

one year ago?