Complete this question by entering your answers in the tabs below.Required 2A Required 2BCompute debt-to-equity ratio for the current year and one year ago.Debt-To-Equity RatioCurrent Year:1 Year Ago:Numerator:1117Denominator:SDebt-To-Equity RatioDebt-to-equity ratio0 to 10 to 1Required 2B> At December 31AssetsCashAccounts receivable, netMerchandise inventoryPrepaid expensesPlant assets, netTotal assetsLiabilities and EquityAccounts payableLong-term notes payableCommon stock, $10 par valueRetained earningsTotal liabilities and equityCost of goods soldOther operating expensesCurrent Year$ 26,05377,05195, 9088, 732242,846$ 450, 590Interest expenseIncome tax expenseTotal costs and expensesNet incomeEarnings per share1 Year AgoCurrent Year$ 31, 38654, 92569, 706$ 66,303$ 113, 31987, 252162, 50087, 51989, 341162,50070, 296$ 450, 590 $ 388, 440$ 357, 318181, 5889,9587,6157,994224, 429388, 440The company's income statements for the current year and one year ago, follow.1 Year AgoFor Year Ended December 31Sales$ 585, 7672 Years Ago556, 479S 29, 288$ 1.80$31, 08543, 15646,4253,596199, 438$ 323, 700$ 42,72870, 822162,50047,650$ 323, 700$ 300, 459116, 94810, 6326,934$ 462,244434,973$ 27,271$ 1.68

Financial ratios are those ratio which state the line items of the balance sheet and these are used…

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 Common stock, $10 par value Retained earnings Total liabilities and equity Current Year $ 26,053 77,051 95, 908 8,732 242,846 $ 450, 590 $ 113,319 87, 252 162,500 87,519 $ 450,590 1 Year Ago 2 Years Ago $ 31, 386 54,925 69,706 7,994 224, 429 $388,440 Current Year $ 66,303 89,341 162,500 70, 296 $ 388,440 $ 31,085 43, 156 $ 585 767 46,425 3,596 199, 438 $ 323,700 The company's income statements for the current year and one year ago, follow. For Year Ended December 31 1 Year Ago Sales $ 42, 728 70, 822 162,500 47,650 $ 323,700

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 Common stock, $10 par value Retained earnings Total liabilities and equity Current Year $ 26,053 77,051 95, 908 8,732 242,846 $ 450, 590 $ 113,319 87, 252 162,500 87,519 $ 450,590 1 Year Ago 2 Years Ago $ 31, 386 54,925 69,706 7,994 224, 429 $388,440 Current Year $ 66,303 89,341 162,500 70, 296 $ 388,440 $ 31,085 43, 156 $ 585 767 46,425 3,596 199, 438 $ 323,700 The company's income statements for the current year and one year ago, follow. For Year Ended December 31 1 Year Ago Sales $ 42, 728 70, 822 162,500 47,650 $ 323,700

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 9RE: RE7-8 Johnson Company uses a perpetual inventory system. On October 23, Johnson purchased 100,000 of...

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