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:
(2) Debt-to-equity ratio.
|
Debt to equity ratio | ||||||
Total liabilities | / | Stockholders’ equity | = | Debt to equity ratio | ||
Current Yr | 269,872.00 | / | 340,726.00 | = | 0.79 | :1 |
1 Yr Ago | 210,593.00 | / | 315,785.00 | = | 0.67 | :1 |
Explanation
Current Yr | 1 Yr Ago | |
Total Liabilities | ||
Current Liabilities | 155,080.00 | 90,737.00 |
Long term Note payable | 114,792.00 | 119,856.00 |
269,872.00 | 210,593.00 | |
Stockholders’ equity | ||
Common stock | 162,500.00 | 162,500.00 |
Retained Earnings | 178,226.00 | 153,285.00 |
340,726.00 | 315,785.00 |
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,...
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,...
Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 28,446 $ 32,579 $ 36,403 Accounts receivable, net 84,111 58,189 47,124 Merchandise inventory 103,659 76,892 51,708 Prepaid expenses 9,253 8,640 3,927 Plant assets, net 261,536 243,532 217,838 Total assets $ 487,005 $ 419,832 $ 357,000 Liabilities and Equity Accounts payable $ 123,690 $ 70,952 $ 47,124 Long-term notes payable secured by mortgages on plant assets 92,473 97,527 80,475 Common stock,...
Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 32,294 $ 38,893 $ 38,527 Accounts receivable, net 93,598 67,395 53,488 Merchandise inventory 117,682 87,294 55,831 Prepaid expenses 10,295 10,009 4,369 Plant assets, net 299,017 273,035 248,985 Total assets $ 552,886 $ 476,626 $ 401,200 Liabilities and Equity Accounts payable $ 136,292 $ 78,133 $ 51,899 Long-term notes payable secured by mortgages on plant assets 100,824 107,432 87,779 Common stock,...
Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 32,935 $ 38,498 $ 38,545 Accounts receivable, net 89,200 62,800 51,100 Merchandise inventory 114,000 85,000 51,000 Prepaid expenses 10,606 10,106 4,283 Plant assets, net 295,220 270,804 233,072 Total assets $ 541,961 $ 467,208 $ 378,000 Liabilities and Equity Accounts payable $ 138,997 $ 81,327 $ 51,393 Long-term notes payable secured by mortgages on plant assets 104,945 110,682 86,044 Common stock,...
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 $ 28,893 88,920 108,544 9,496 269,002 $504,855 $ 34,469 $ 36,646 59,712 49,355 82,931 52,032 9,140 4,072 248,968 231,795 $ 435,220 $ 373,900 $124,452...
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 $ 36,073 104,549 135,475 11,498 336,283 $623,878 $ 42,166 $ 43,066 74,543 58,001 100,493 62,395 11,068 4,833 309,556 271,105 $ 537,826 $ 439,400 $150,685...
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 $ 27,035 77,588 95,620 8,621 240, 374 $449,238 $ 31,602 $ 31,950 55,845 41,765 71,646 46, 277 8,051 3,480 220, 130 192,928 $ 387,274...
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 $ 28,893 88,920 108,544 9,496 269,002 $504,855 $ 34,469 $ 36,646 59,712 49,355 82,931 52,032 9,140 4,072 248,968 231,795 $ 435,220 $ 373,980 $...
Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 26,445 $ 30,912 $ 31,878 Accounts receivable, net 89,500 62,900 51,500 Merchandise inventory 114,000 85,000 56,000 Prepaid expenses 8,516 8,114 3,542 Plant assets, net 209,763 199,474 179,080 Total assets $ 448,224 $ 386,400 $ 322,000 Liabilities and Equity Accounts payable $ 111,608 $ 65,302 $ 42,504 Long-term notes payable secured by mortgages on plant assets 84,266 88,872 71,162 Common stock,...