Hi could you please complete all parts to the question? Reguired information The

Question

Hi could you please complete all parts to the question?

Reguired information The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow At December 31 Assets Cash Accounts receivable, net Merchandise inventor Prepaid expenses Plant assets, net Total assets 2017 2016 2015 $ 29,806 35,544 34,869 47,441 52,055 3,914 273,367252,234 221,121 $510,291 $439,906 359,400 85,515 60,971 111,907 82,196 8,961 9,696 Liabilities and Equity Accounts payable Long-term notes payable secured by $127,062 $ 73,601 46,492 mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity 95,935 102,190 124,794 101,615 $439,906 77,839 162,500 162,500162,500 72,569 $510,291 $.359,400 The company's income statements for the years ended December 31, 2017 and 2016, follow For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income taxes Total costs and expenses Net income 2017 2016 $663,378 $523,488 $404,661 205,647 11,277 8,624 $ 340, 267 132,442 12,040 7,852 630,209 33, 169 $2.04 492,601 $ 30,887 $ 1.90 Earnings per share Calculate the company's long-term risk and capital structure positions at the end of 2017 and 2016 by computing the following ratios

Explanation / Answer

CALCULATION OF RATIOS FOR 2017 AND 2016:

RATIOS NUMERATOR / DENOMINATOR = 2017 2016 1a. Debt Ratio Total debt / Total Assets = 222,997 / 510,291 = 43.69% 175,791 / 439,906 = 39.96% b. Equity Ratio Total equity / Total Assets = 287,294 / 510,291 = 56.30% 264,115 / 439,906 = 60.03% 2. Debt to equity Ratio Long term debt / Equity = 85,935 / 287,294 = 0.29:1 102,190 / 264,115 = 0.38:1 3. Times Interest earned Income before Interest expense / Interest expense = 53,070 / 11,277 = 4.7 times 50,779 / 12,040 = 4.2 times

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