Question

Exercise 13-9 Analyzing risk and capital structure LO P3 [The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. Current Yr1 Yr Ago 2 Yrs Ago $ 33,081 95,879 124, 167 10,334 297,237 $560,698 $ 39,055 $ 39, 478 69,701 53,701 90,316 57,198 9,948 4,431 274,340 247,992 $ 483,360 $ 402,800 S $560,698 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 sec mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $142, 406 $ 80,054 $ 54,233 104,357 162,500 151,435 $560,698 107,838 87,238 162,500 162,500 132,968 98,829 $ 483,360 $ 402,800 The company's income statements for the Current Year and 1 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 Current Yr $728,907 $444,633 225, 961 12,391 9,476 692, 461 $ 36, 446 1 Yr Ago $ 575, 198 $373, 879 145, 525 13,230 8,628 541, 262 $ 33,936 2.24 $ 2.09 For both the Current Year and 1 Year Ago, compute the following ratios: