Homework Answers
1. Formula for Debt ratio is:
Debt ratio = Total liabilities / Total assets
For current year:
Total liabilities = Accounts payable + Long term notes payable
Total liabilities = $114943 + $85066 = $200009
Total assets = $457047
Putting these values in the above formula, we get,
Debt ratio = $200009 / $457047 = 0.4376 = 43.76%
For 1 year ago:
Total liabilities = Accounts payable + Long term notes payable
Total liabilities = $65255 + $92434 = $157689
Total assets = $394006
Putting these values in the above formula, we get,
Debt ratio = $157689 / $394006 = 0.4002 = 40.02%
2. Formula for Equity ratio is:
Equity ratio = Total equity / Total assets
For current year:
Total equity = Common stock + Retained earnings
Total equity = $162500 + $94538 = $257038
Total assets = $457047
Putting these values in the above formula, we get,
Debt ratio = $257038 / $457047 = 0.5623 = 56.23%
For 1 year ago:
Total equity = Common stock + Retained earnings
Total equity = $162500 + $73817 = $236317
Total assets = $457047
Putting these values in the above formula, we get,
Debt ratio = $236317 / $457047 = 0.5170 = 51.70%
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nework i Saved ! Required information Exercise 13-9 Analyzing risk and capital structure LO P3 [The...
Exercise 13-9 Analyzing risk and capital structure LO P3 (The following information applies to the questions...
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 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 $ 35,255 101,177 127,211 10,908 311,271...
Exercise 13-9 Analyzing risk and capital structure LO P3 (The following information applies to the questions...
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 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 $ 29,466 84,571 105,290 8,936 256,608...
Exercise 13-9 Analyzing risk and capital structure LO P3 [The following information applies to the questions...
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 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 $ 29,202 88,126 109,785 9,598 273,625...
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...
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...
Exercise 13-9 Analyzing risk and capital structure LO P3 [The following information applies to the questions...
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...
Required information Exercise 13-9 Risk and capital structure analysis LO P3 (The following information applies to...
Required 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 $ 26,975 $ 31,225 $ 31,569 74,385 53,036 42,942...
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 $31.899 $35.625 $ 37.899 89,500 62.5ee 5 0.200 112,500 82,509 54,...
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 $ 26,752 81,533 103,517 8,615 247,036 $467,453 $ 31,593 $ 33,588 57,545 45,241...
Saved Exercise 13-7 Analyzing liquidity LO P3 Simon Company's year-end balance sheets follow. Current Yr 1...
Saved Exercise 13-7 Analyzing liquidity LO P3 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 $ 29,947 87,692 112,506 9,843 283,295 $ 523,283 $ 35,728 $ 37,953 64,418 48,148 81,786 52,324 9,663...
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 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 $ 35,255 101,177 127,211 10,908 311,271...
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 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 $ 29,466 84,571 105,290 8,936 256,608...
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 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 $ 29,202 88,126 109,785 9,598 273,625...
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...
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...
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...
Required 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 $ 26,975 $ 31,225 $ 31,569 74,385 53,036 42,942...
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 $31.899 $35.625 $ 37.899 89,500 62.5ee 5 0.200 112,500 82,509 54,...
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 $ 26,752 81,533 103,517 8,615 247,036 $467,453 $ 31,593 $ 33,588 57,545 45,241...
Saved Exercise 13-7 Analyzing liquidity LO P3 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 $ 29,947 87,692 112,506 9,843 283,295 $ 523,283 $ 35,728 $ 37,953 64,418 48,148 81,786 52,324 9,663...
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