Exercise 13-9 Analyzing risk and capital structure LO P3 (The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ago At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total ante Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant anneta Common stock, $10 par value Retained earningo Total liabilities and equity $ 29, 472 88,942 110.720 9,491 276,351 $514,976 $ 35,516 $ 35,907 61,531 48,355 81,309 50, 473 9,136 4,069 256, 453 223,896 $ 443,945 $ 362,700 $130,794 $ 75,777 $ 48,355 95.847 162,500 125, 835 $514,976 103, 128 80,958 162,500 162,500 102540 70, 887 $443,945 $ 362,700 The company's income statements for the Current Year and 1 Year Ago, follow. Yor Year Ended December 31 Current Ye Yr Ago Sales $ 669,469 $ 528,295 Cost of goods sold $408,376 $343,392 Other operating expensos 207,535 133,659 Interest expense 11,381 12,151 Income tax expense 8.703 7,924 Total costs and expenses 635,995 497, 126 Net income $ 33,474 $ 31,169 Earnings per share $ 2.06 5 1.92 For both the Current Year and 1 Year Ago, compute the following ratios: Exercise 13-9 Part 1 (1) Debt and equity ratios. Debt Ratio Choose Numerator: Choose Denominator: Current Year: Debt Ratio Debt ratio % % 1 Year Ago: Equity Ratio Choose Numerator: Choose Denominator: 1 Current Year: 1 Year Ago: 1 Equity Ratio Equity ratio % %