Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory...
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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 Current Year 1 Year Ago 2 Years Ago $ 33,739 101,820 128,019 10,977 314,987 $ 41,065 73,286 $ 43,199 55,340 60,748 92,141 10,779 290,955 $ 508,226 $ 589,542 $ 149,732 Long-term notes payable Common stock, $10 par value Retained earnings 167,584 $ 86,749 115,723 162,500 143,254 Total liabilities and equity $ 589,542 $ 508,226 109,726 162,500 4,659 263,854 $ 427,800 $ 54,776 96,435 162,500 114,089 $ 427,800 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 $ 604,789 Current Year 1 Year Ago $ 766,405 $ 467,507 237,586 $ 393,113 153,012 13,910 9,072 13,029 9,963 728,085 $ 38,320 569,107 $ 35,682 Earnings per share $ 2.36 $ 2.20 (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? 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 Current Year 1 Year Ago 2 Years Ago $ 33,739 101,820 128,019 10,977 314,987 $ 41,065 73,286 $ 43,199 55,340 60,748 92,141 10,779 290,955 $ 508,226 $ 589,542 $ 149,732 Long-term notes payable Common stock, $10 par value Retained earnings 167,584 $ 86,749 115,723 162,500 143,254 Total liabilities and equity $ 589,542 $ 508,226 109,726 162,500 4,659 263,854 $ 427,800 $ 54,776 96,435 162,500 114,089 $ 427,800 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 $ 604,789 Current Year 1 Year Ago $ 766,405 $ 467,507 237,586 $ 393,113 153,012 13,910 9,072 13,029 9,963 728,085 $ 38,320 569,107 $ 35,682 Earnings per share $ 2.36 $ 2.20 (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?
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