[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, $10 par valueRetained earningsTotal liabilities and equityInterest expenseIncome tax expenseTotal costs and expensesNet incomeCurrent YearEarnings per share$ 28,74285,004104,7399,256269,358$ 497,099$ 126,25392,520162,500115,826$ 497,099Current Year$ 394,200200,33110,9868,4011 Year AgoExercise 13-10 (Algo) Part 3 [Alternate Version]$ 33,59759,99581,6579,179244,106$ 428,534The company's income statements for the current year and one year ago, follow.For Year Ended December 31SalesCost of goods soldOther operating expenses$ 73,87199,548162,50092,615$ 428,534$ 646,2292 Years Ago613,918$ 32,311$ 1.99$ 35,35446,65850,7104,089227,589$364,400$ 47,62080,532162,50073,748$364,4001 Year Ago$ 331,471129,01911,7297,649$ 509,955479,868$ 30,087$ 1.85 Exercise 13-10 (Algo) Part 3 [Alternate Version](3-a) Compute times interest earned for the current year and one year ago.(3-b) Based on times interest earned, is the company more or less risky for creditors in the Current Year versus 1 Year Ago?Complete this question by entering your answers in the tabs below.Required 3A Required 3BCompute times interest earned for the current year and one year ago.Current Year:1 Year Ago:Times Interest EarnedNumerator:Income before interest expense and income tax expense< Required 3A1111Denominator:Interest expenseRequired 3B >==Times interest earned0 times0 times

The time interest earned ratio indicates the ability of the company to pay out its debt obligation…

Exercise 13-10 (Algo) Part 3 [Alternate Version] (3-a) Compute times interest earned for the current year and one year ago. (3-b) Based on times interest earned, is the company more or less risky for creditors in the Current Year versus 1 Year Ago? Complete this question by entering your answers in the tabs below. Required 3A Required 3B Compute times interest earned for the current year and one year ago. Times Interest Earned Current Year: 1 Year Ago: Numerator: Income before interest expense and income tax expense < Required 3A 1 1 1 1 Denominator: Interest expense Required 3B > = = Times interest earned 0 times 0 times

Exercise 13-10 (Algo) Part 3 [Alternate Version] (3-a) Compute times interest earned for the current year and one year ago. (3-b) Based on times interest earned, is the company more or less risky for creditors in the Current Year versus 1 Year Ago? Complete this question by entering your answers in the tabs below. Required 3A Required 3B Compute times interest earned for the current year and one year ago. Times Interest Earned Current Year: 1 Year Ago: Numerator: Income before interest expense and income tax expense < Required 3A 1 1 1 1 Denominator: Interest expense Required 3B > = = Times interest earned 0 times 0 times

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 38E: Sundahl Companys income statements for the past 2 years are as follows: Refer to the information for...

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