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Homework Answers
Answer:
Total Liabilities (2017) = $129,900 + $98,500 = $228,400
Total Liabilities (2016) = $75,250 + $101,500 = $176,750
Total Equity (2017) = $163,500 + $131,100 = $294,600
Total Equity (2016) = $163,500 + $104,750 = $268,250
(1) Debt and Equity ratios
| Debt Ratio | |||||
| Choose Numerator: | \ | Choose Denominator: | = | Debt Ratio | |
| Total Liabilities | \ | Total Assets | = | Debt Ratio | |
| 2017 | $228,400 | \ | $523,000 | = | 43.67% |
| 2016 | $176,750 | \ | $445,000 | = | 39.72% |
| Equity Ratio | |||||
| Choose Numerator: | \ | Choose Denominator: | = | Equity ratio | |
| Total Equity | \ | Total Assets | = | Equity ratio | |
| 2017 | $294,600 | \ | $523,000 | = | 56.32% |
| 2016 | $268,250 | \ | $445,000 | = | 60.28% |
(2) Debt-to-Equity ratio
| Debt-to-Equity Ratio | ||||||
| Choose Numerator: | \ | Choose Denominator: | = | Debt-to-equity Ratio | ||
| Total Liabilities | \ | Total Equity | = | Debt-to-equity Ratio | ||
| 2017 | $228,400 | \ | $294,600 | = | 0.77 | to 1 |
| 2016 | $176,750 | \ | $268,250 | = | 0.65 | to 1 |
(3) Times Interest earned
Earnings before Interest and Taxes = Net Income + Taxes + Interest Expense
Earnings before Interest and Taxes (2017) = $31,100 + $9,525 + $12,100 = $52,725
Earnings before Interest and Taxes (2016) = $29,375 + $8,845 + $13,300 = $51,520
| Times Interest Earned | ||||||
| Choose Numerator: | \ | Choose Denominator: | = | Times Interest earned | ||
| Earnings before Interest and Taxes | \ | Interest Expense | = | Times Interest earned | ||
| 2017 | $52,725 | \ | $12,100 | = | 4.35 | times |
| 2016 | $51,520 | \ | $13,300 | = | 3.87 | times |
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Exercise 13-9 Risk and capital structure analysis LO P3 (The following information applies to the questions...
[The following information applies to the questions displayed below.] Simon Company’s year-end balance sheets follow. At...
[The following information applies to the questions displayed below.] Simon Company’s year-end balance sheets follow. At December 31 2017 2016 2015 Assets Cash $ 31,800 $ 35,625 $ 37,800 Accounts receivable, net 89,500 62,500 50,200 Merchandise inventory 112,500 82,500 54,000 Prepaid expenses 10,700 9,375 5,000 Plant assets, net 278,500 255,000 230,500 Total assets $ 523,000 $ 445,000 $ 377,500 Liabilities and Equity Accounts payable $ 129,900 $ 75,250 $ 51,250 Long-term notes payable secured by mortgages on plant assets 98,500...
At December 31 2017 2016 2015 Assets Cash $ 31,800 $ 35,625 $ 37,800 Accounts receivable,...
At December 31 2017 2016 2015 Assets Cash $ 31,800 $ 35,625 $ 37,800 Accounts receivable, net 89,500 62,500 50,200 Merchandise inventory 112,500 82,500 54,000 Prepaid expenses 10,700 9,375 5,000 Plant assets, net 278,500 255,000 230,500 Total assets $ 523,000 $ 445,000 $ 377,500 Liabilities and Equity Accounts payable $ 129,900 $ 75,250 $ 51,250 Long-term notes payable secured by mortgages on plant assets 98,500 101,500 83,500 Common stock, $10 par value 163,500 163,500 163,500 Retained earnings 131,100 104,750 79,250...
Exercise 17-8 Liquidity analysis and interpretation LO P3 [The following information applies to the questions displayed...
Exercise 17-8 Liquidity analysis and interpretation LO P3 [The following information applies to the questions displayed below.j Simon Company's year-end balance sheets follovw At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets 2017 $ 31,800 35,625 $37,800 50,200 54,000 5,000 278, 500 255,000 230,500 $523,000 $445,000 377,500 89,500 62,500 112,500 82,500 9,375 10,700 Liabilities and Equity Accounts payable Long-term notes payable secured by $129,900 75,250 $ 51,250 mortgages on plant assets Common...
Exercise 13-9 Risk and capital structure analysis LO P3 The following information applies to the questions...
Exercise 13-9 Risk and capital structure analysis LO P3 The following information applies to the questions displayed below) Simon Company's year-end balance sheets follow. 2017 2016 2015 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 secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 28,642 $ 31,838 $ 32,853 80,570 56,29145, 131 101,302 74,385...
Required information [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets...
Required information [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ago 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 secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 31,800 89,500 112,500 10,700 278,500 $ 523,000 $ 35,625 $ 37,800 62,500...
en year and one year ago follow. Assume that all sales are on credit and then...
en year and one year ago follow. Assume that all sales are on credit and then compute (1) days' sales Analyzing and interpret Refer to the Simon Company information in Exercise 13-6. The company's income statements for the cur-Exercise 13-8 collected, (2) accounts receivable turnover, (3) inventory turnover, and (4) days' sales in inventory. For liquidity auch ratio, determine if it improved or worsened in the current year. Round to one decimal. P3 For Year Ended December 31 Current Yr...
Exercise 13-11 Profitability analysis LO P3 Simon Company's year-end balance sheets follow. 2017 2016 2015 At...
Exercise 13-11 Profitability analysis LO P3 Simon Company's year-end balance sheets follow. 2017 2016 2015 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 secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 31,900 $ 35,625 $ 37.989 89,500 62.500 50.299 112,500 82,50 54.888 19.788 9.375 5,000 278,580 255,000 230,500 $523,000 $445,688 $ 377,500 $129.900...
requirea information Exercise 13-9 Risk and capital structure analysis LO P3 The following information applies t...
requirea information Exercise 13-9 Risk and capital structure analysis LO P3 The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. 2017 2016 2015 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 secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 26,279 $ 30,410 $ 31,367 75,402 52,681 40,580...
Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs...
Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 31,800 $ 35,625 $ 37,800 Accounts receivable, net 89,500 62,500 50,200 Merchandise inventory 112,500 82,500 54,000 Prepaid expenses 10,700 9,375 5,000 Plant assets, net 278,500 255,000 230,500 Total assets $ 523,000 $ 445,000 $ 377,500 Liabilities and Equity Accounts payable $ 129,900 $ 75,250 $ 51,250 Long-term notes payable secured by mortgages on plant assets 98,500 101,500 83,500 Common stock,...
Required information [The following information applies to the questions displayed below) Simon Company's year-end balance sheets...
Required information [The following information applies to the questions displayed below) Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ago 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 secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 31,800 89,500 112,500 10,780 278,500 $ 523,000 $ 35,625 $ 37,800 62,500...
Exercise 17-8 Liquidity analysis and interpretation LO P3 [The following information applies to the questions displayed below.j Simon Company's year-end balance sheets follovw At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets 2017 $ 31,800 35,625 $37,800 50,200 54,000 5,000 278, 500 255,000 230,500 $523,000 $445,000 377,500 89,500 62,500 112,500 82,500 9,375 10,700 Liabilities and Equity Accounts payable Long-term notes payable secured by $129,900 75,250 $ 51,250 mortgages on plant assets Common...
Exercise 13-9 Risk and capital structure analysis LO P3 The following information applies to the questions displayed below) Simon Company's year-end balance sheets follow. 2017 2016 2015 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 secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 28,642 $ 31,838 $ 32,853 80,570 56,29145, 131 101,302 74,385...
Required information [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ago 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 secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 31,800 89,500 112,500 10,700 278,500 $ 523,000 $ 35,625 $ 37,800 62,500...
en year and one year ago follow. Assume that all sales are on credit and then compute (1) days' sales Analyzing and interpret Refer to the Simon Company information in Exercise 13-6. The company's income statements for the cur-Exercise 13-8 collected, (2) accounts receivable turnover, (3) inventory turnover, and (4) days' sales in inventory. For liquidity auch ratio, determine if it improved or worsened in the current year. Round to one decimal. P3 For Year Ended December 31 Current Yr...
Exercise 13-11 Profitability analysis LO P3 Simon Company's year-end balance sheets follow. 2017 2016 2015 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 secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 31,900 $ 35,625 $ 37.989 89,500 62.500 50.299 112,500 82,50 54.888 19.788 9.375 5,000 278,580 255,000 230,500 $523,000 $445,688 $ 377,500 $129.900...
requirea information Exercise 13-9 Risk and capital structure analysis LO P3 The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. 2017 2016 2015 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 secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 26,279 $ 30,410 $ 31,367 75,402 52,681 40,580...
Required information [The following information applies to the questions displayed below) Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ago 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 secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 31,800 89,500 112,500 10,780 278,500 $ 523,000 $ 35,625 $ 37,800 62,500...
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