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 Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity Interest expense Income tax expense Total costs and expenses Net income Current Year 1 Year Ago 2 Years Ago $ 38,057 $ 37,692 $ 32,880 91,559 67,918 51,292 120,991 86,264 55,178 9,891 4,274 10,381 290,549 268,870 244,064 $546,360 $ 471,000 $ 392,500 Earnings per share. $ 136,044 100,661 162,500 147,155 $ 546,360 $ 471,000 $ 392,500 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 $ 78,803 107,247 162,500 122,450 Current Year $ 433,263 220,183 12,075 9,233 $ 52,846 88,477 162,500 88,677 $ 710,268 674,754 $ 35,514 $ 2.19 1 Year Ago $364,319 141,804 12,891 8,407 $ 560,490 527,421 $ 33,069 $ 2.04 (1) Compute debt and equity ratio for the current year and one year ago. Current Year: 1 Year Ago: Current Year: 1 Year Ago: Numerator: Total liabilities Numerator: Total equity Debt Ratio Denominator: / Total assets Equity Ratio 1 1 Denominator: /Total assets 11 = 11 11 Debt Ratio Debt ratio Equity Ratio Equity r 0 % 0% 0 % 0 % 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 Interest expense Income tax expense Total costs and expenses Net income Current Year 1 Year Ago 2 Years Ago $ 38,057 $ 37,692 $ 32,880 91,559 67,918 51,292 120,991 86,264 55,178 9,891 4,274 10,381 290,549 268,870 244,064 $546,360 $ 471,000 $ 392,500 Earnings per share. $ 136,044 100,661 162,500 147,155 $ 546,360 $ 471,000 $ 392,500 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 $ 78,803 107,247 162,500 122,450 Current Year $ 433,263 220,183 12,075 9,233 $ 52,846 88,477 162,500 88,677 $ 710,268 674,754 $ 35,514 $ 2.19 1 Year Ago $364,319 141,804 12,891 8,407 $ 560,490 527,421 $ 33,069 $ 2.04 (1) Compute debt and equity ratio for the current year and one year ago. Current Year: 1 Year Ago: Current Year: 1 Year Ago: Numerator: Total liabilities Numerator: Total equity Debt Ratio Denominator: / Total assets Equity Ratio 1 1 Denominator: /Total assets 11 = 11 11 Debt Ratio Debt ratio Equity Ratio Equity r 0 % 0% 0 % 0 %
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To calculate the debt and equity ratios well use the following formulas Debt Ra... View the full answer
Related Book For
Fundamental Accounting Principles
ISBN: 978-1259536359
23rd edition
Authors: John Wild, Ken Shaw, Barbara Chiappett
Posted Date:
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