Simon Company’s year-end balance sheets follow.
At December 31 | Current Year | 1 Year Ago | 2 Years Ago |
|---|---|---|---|
Assets |
|
|
|
Cash | $ 35,679 | $ 41,706 | $ 43,009 |
Accounts receivable, net | 100,307 | 71,525 | 58,516 |
Merchandise inventory | 133,918 | 95,480 | 64,208 |
Prepaid expenses | 11,490 | 10,729 | 4,974 |
Plant assets, net | 323,338 | 301,881 | 272,593 |
Total assets | $ 604,732 | $ 521,321 | $ 443,300 |
Liabilities and Equity |
|
|
|
Accounts payable | $ 149,072 | $ 86,341 | $ 60,271 |
Long-term notes payable | 114,827 | 116,307 | 97,969 |
Common stock, $10 par value | 162,500 | 162,500 | 162,500 |
Retained earnings | 178,333 | 156,173 | 122,560 |
Total liabilities and equity | $ 604,732 | $ 521,321 | $ 443,300 |
The company’s income statements for the current year and one year ago, follow.
For Year Ended December 31 | Current Year | 1 Year Ago | ||
|---|---|---|---|---|
Sales |
| $ 786,152 |
| $ 620,372 |
Cost of goods sold | $ 479,553 |
| $ 403,242 |
|
Other operating expenses | 243,707 |
| 156,954 |
|
Interest expense | 13,365 |
| 14,269 |
|
Income tax expense | 10,220 |
| 9,306 |
|
Total costs and expenses |
| 746,845 |
| 583,771 |
Net income |
| $ 39,307 |
| $ 36,601 |
Earnings per share |
| $ 2.42 |
| $ 2.25 |
(2-a) Compute debt-to-equity ratio for the current year and one year ago.
(2-b) Based on debt-to-equity ratio, does the company have more or less debt in the current year versus one year ago?
- Required 2B
Compute debt-to-equity ratio for the current year and one year ago.
| ||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
- Required 2B
Based on debt-to-equity ratio, does the company have more or less debt in the current year versus one year ago?
| ||||
|
