Question

$ 36,149 102,676 130,413 11,758 331,704 $612,700 $ 43,523 $ 44,007 75,426 57,526 98,692 62,502 10,981 4,698 299,568 267,067 $ 528,190 $ 435,800 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 $147,985 112,884 162,500 189,331 $612,700 $ 91,049 $ 56,950 119,054 97,275 162,500 162,500 155,587 119,075 $ 528,190 $ 435,800 The company's income statements for the Current Year and 1 Year Ago, follow. For Year Ended December 31 Current Yr 1 Yr Ago Sales $796,510 $628,546 Cost of goods sold $485, 871 $408,555 Other operating expenses 246,918 159,022 Interest expense 13,541 14,457 Income tax expense 10, 355 9,428 Total costs and expenses 756,685 591,462 Net income $ 39,825 $ 37,084 Earnings per share $ 2.45 $ 2.28 For both the Current Year and 1 Year Ago, compute the following ratios:

Answer 1

Debt Ratio Debt Ratio Current Year こ = Debt Ratto 42.6 of 39.8 7 1 Year Ago? Choose Choose Numerator: Denominator: Total liabilities 1 Total Assets $ 260,869 2 $ 612,700 $ 210, 103 / $ 528,190 Equity Ratio Choose Choose Numerator: 1 Denominator : Total equity / Total assets $ 351,831 I $ 612,700 $ 318,087 1 $528,190 Current Year Equity Ratio Equity Ratio 57.4 Z 7 L1 Year Ago! 6012 Calculation: Total liabilities = (Accounts Payable thong team notes payable) Current year: total liabilities = $147,985 + $112,884 * $260,869 'Yo Ago: To tal liabidities = $91,049 +$ 119,054 = $210,103 Total equity = common stock & Retained earnings Current Yrigotal equity $162,500 + $189,331 = $351,831 1Yr Ago: Total Equity $ 162,500+ $155,587 - $318,087