Exercise $13-9($Algo$)$ Analyzing risk and capital structure LO P$3$

The company's income statements for the current year and one year ago, follow.

$(1)$ Debt and equity ratios.

$(2-$a$)$ Compute debt$-$to$-$equity ratio for the current year and one year ago.

$(2-$b$)$ Based on debt$-$to$-$equity ratio, does the company have more or less debt in the current year versus one year ago?

$(3-$a$)$ Times interest earned.

$(3-$b$)$ Based on times interest earned, is the company more or less risky for creditors in the Current Year versus $1$ Year Ago? Compute debt and equity ratio for the current year and one year ago. Required $1$

Required $2A$

Required $2$B

Required $3$A

Required $3$B

Compute debt$-$to$-$equity ratio for the current year and one year ago.Compute times interest earned for the current year and one year ago.Use the following information for the Exercises below. $($Algo$)$

$[$The following information applies to the questions displayed below.$]$

Simon Company's year$-$end balance sheets follow.

For both the current year and one year ago, compute the following ratios: