Simon Company's year-end balance sheets follow. 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 Current Year 1 Year Ago 2 Years Ago $ 25,693 75, 195 91,790 7,868 226,383 $426,929 $ 106,305 81.065 $ 30,032 51,526 68,088 7,729 210,667 $368,042 $ 60,955 86.343 $ 31,284 40,485 44,871 3,408 189,752 $ 309,800 $ 40,894 66.412

Simon Company's year-end balance sheets follow. 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 Current Year 1 Year Ago 2 Years Ago $ 25,693 75, 195 91,790 7,868 226,383 $426,929 $ 106,305 81.065 $ 30,032 51,526 68,088 7,729 210,667 $368,042 $ 60,955 86.343 $ 31,284 40,485 44,871 3,408 189,752 $ 309,800 $ 40,894 66.412

Name: (1) Debt and equity ratios.(2-a) Compute debt-to-equity ratio for the
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Description: (1) Debt and equity ratios.(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?(3-a) Times interest earned.(3-b

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 6DQ: What do the following data, taken from a comparative balance sheet, indicate about the companys...

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