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B. Exercise 17-9 (Algo) Analyzing risk and capital structure LO P3 (Alternate Version) [The following information applies to the questions displayed below) Simon Company's year-end balance sheets follow. Current Year 1 Year ago 2 Years Ago pped At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable tong-tern notes payable Connon stock, 510 par value Retained earnings Total liabilities and equity $ 29,842 84,745 108,748 9.513 278,064 $ 510,912 Book $ 35,940 61,045 82,296 9,434 251,726 $ 440,441 $ 35,252 48,448 52,635 3,997 223.063 $363, 400 Print $ 131,034 97,012 162,500 120,366 $ 510,912 $ 72,946 99,275 162,500 105, 220 $ 440.441 $ 47, 489 77,902 162,500 75509 . 363,400 The company's income statements for the current year and one year ago, follow. Yor Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Earnings per share Current Year 5 664,186 $ 405,153 205,898 11,291 8,634 630, 976 $ 33,210 $ 2.04 1 Year ago $ 524,125 $ 340,681 132,604 12,055 7,862 493,202 $ 30,923 $ 1.90 Exercise 17-9 (Algo) Part 1 (Alternate Version) (1) Compute debt and equity ratio for the current year and one year ago. Debt Ratio Numerator: Denominator: Debt Ratio Current Year: Debt ratio % 1 Year Ago: % Equity Ratio 1 Numerator: Denominator: 1 - Equity Ratio Equity ratio Current Year: 1 Year Ago: % %