(1) Compute debt and equity ratio for the current year and one year ago.(2) Compute debt-to-equity ratio for the current year and one year ago.(3)Compute times interest eamed for the current year and one year ago. Please avoid solutions in an image format thank you Required informationExercise 13-10 (Algo) Analyzing risk and capital structure LO P3 [Alternate Version][The following information applies to the questions displayed below.]Simon Company's year-end balance sheets follow.At December 31AssetsCashAccounts receivable, netMerchandise inventoryPrepaid expensesPlant assets, netTotal assetsLiabilities and EquityAccounts payableLong-term notes payableCommon stock, $10 par valueRetained earningsTotal liabilities and equityCurrent Year$ 27,41381,908102,9848,919257,772$ 478,996Interest expenseIncome tax expenseTotal costs and expensesNet incomeEarnings per share$ 119,27091,852162,500105,374$ 478,996Current Year1 Year Ago$ 33,03457,23275,6288,671238,363$ 412,928$ 379,844193,03510,5868,095$ 67,69195,923162,50086,814$ 412,928The company's income statements for the current year and one year ago, follow.For Year Ended December 31SalesCost of goods soldOther operating expenses$622,6952 Years Ago$ 33,72944,52348,3793,710210,359$ 340,700591,560$ 31,135$ 1.92$ 45,42274,542162,50058,236$ 340,7001 Year Ago$319,400124,32011,3027,371$ 491,384462,393$ 28,991$ 1.78

Ratio analysis is the type of analysis done through the preparation of ratios with the elements of…

Compute debt and equity ratio for the current year and one year ago. (2) Compute debt-to-equity ratio for the current year and one year ago. (3)Compute times interest eamed for the current year and one year ago.

Compute debt and equity ratio for the current year and one year ago. (2) Compute debt-to-equity ratio for the current year and one year ago. (3)Compute times interest eamed for the current year and one year ago.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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