Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs...

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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		$	34,945	$	43,374	$	44,312
Accounts receivable, net			104,412		72,956		58,492
Merchandise inventory			132,591		98,354		63,559
Prepaid expenses			11,369		11,386		4,874
Plant assets, net			327,281		300,308		276,363
Total assets		$	610,598	$	526,378	$	447,600
Liabilities and Equity
Accounts payable		$	155,080	$	90,737	$	57,902
Long-term notes payable secured by mortgages on plant assets			114,792		119,856		98,920
Common stock, $10 par value			162,500		162,500		162,500
Retained earnings			178,226		153,285		128,278
Total liabilities and equity		$	610,598	$	526,378	$	447,600

The company’s income statements for the Current Year and 1 Year Ago, follow.

For Year Ended December 31	Current Yr				1 Yr Ago
Sales			$	793,777			$	626,390
Cost of goods sold	$	484,204			$	407,154
Other operating expenses		246,071				158,477
Interest expense		13,494				14,407
Income tax expense		10,319				9,396
Total costs and expenses				754,088				589,434
Net income			$	39,689			$	36,956
Earnings per share			$	2.44			$	2.27

For both the Current Year and 1 Year Ago, compute the following ratios:

(1) Debt and equity ratios.

Debt Ratio
	Choose Numerator:	/	Choose Denominator:	=	Debt Ratio
		/		=	Debt ratio
Current Year:		/		=		%
1 Year Ago:		/		=		%
Equity Ratio
	Choose Numerator:	/	Choose Denominator:	=	Equity Ratio
		/		=	Equity ratio
Current Year:		/		=		%
1 Year Ago:		/		=		%

business accounting

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Answer 1

Answer #1

Debt Ratio Choose Numerator: Choose Denominator: =Debt Ratio Total Liabilities Total Assets =Debt ratio $ 269,872 ||$ 610,598

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Answer 2

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