Question: stuck on this huge problem, any help would be greatly appreciated Exercise 13-9 (Static) Analyzing risk and capital structure LO P3 The company's income statements

















Exercise 13-9 (Static) Analyzing risk and capital structure LO P3 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 Earnings per share (1) Debt and equity ratios. Current Year $ 411,225 209,550 1 Year Ago $ 673,500 $ 345,500 134,980 13,300 8,845 12,100 9,525 642,400 $ 31,100 $ 1.90 (2-a) Compute debt-to-equity ratio for the current year and one year ago. $532,000 502,625 $ 29,375 $ 1.80 (2-b) Based on debt-to-equity ratio, does the company have more or less debt in the current year versus one year ago? (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 1 Required 2A Required 2B Required 3A Required 3B Compute debt and equity ratio for the current year and one year ago. Debt Ratio Numerator: Denominator: Debt Ratio
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