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Did the acid-test ratio improve or worsen over the three-year period? Exercise 13-9 (Algo) Analyzing risk and capital structure LO P3 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? Complete this question by entering your answers in the tabs below. Compute debt and equity ratio for the current year and one year ago. 2. Assuming annual sales have not changed in the last three years, is the change in accounts receivable as a percentage of total assets favorable or unfavorable? 3. Assuming annual sales have not changed in the last three years, is the change in merchandise inventory as a percentage of total assets favorable or unfavorable? Compute times interest earned for the current year and one year ago. Required information 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: Based on debt-to-equity ratio, does the company have more or less debt in the current year versus one year ago Based on times interest earned, is the company more or less risky for creditors in the Current Year versus 1 Year Ago? Compute the dividend yield for each year. Note: Round your answers to 2 decimal places. Compute the price-earnings ratio for each year. Note: Round your answers to 2 decimal places. Compute debt-to-equity ratio for the current year and one year ago. Based on return on total assets, did Simon's operating efficiency improve or worsen in the Current Year versus 1 Year Ago? (1-a) Compute the current ratio for each of the three years. (1-b) Did the current ratio improve or worsen over the three-year period? (2-a) Compute the acid-test ratio for each of the three years. (2-b) Did the acid-test ratio improve or worsen over the three-year period? Complete this question by entering your answers in the tabs below. Compute the current ratio for each of the three years. Complete this question by entering your answers in the tabs below. Compute the acid-test ratio for each of the three years. Did the current ratio improve or worsen over the three-year period? Compute return on total assets for the current year and one year ago. Assuming Simon's competitor has a price-earnings ratio of 8 , which company has higher market expectations for future growth? Which company has higher market expectations for future growth? Exercise 13-11 (Algo) Analyzing profitability LO P3 The company's income statements for the Current Year and 1 Year Ago, follow. Additional information about the company follows. For both the current year and one year ago, compute the following ratios: 1. Return on equity. 2. Dividend yield. 3a. Price-earnings ratio on December 31. 3b. Assuming Simon's competitor has a price-earnings ratio of 8 , which company has higher market expectations for future growth? Complete this question by entering your answers in the tabs below. Compute the return on equity for each year. 1. Express the balance sheets in common-size percents. 2. Assuming annual sales have not changed in the last three years, is the change in accounts receivable as a percentage of total assets favorable or unfavorable? 3. Assuming annual sales have not changed in the last three years, is the change in merchandise inventory as a percentage of total assets favorable or unfavorable? Complete this question by entering your answers in the tabs below. Express the balance sheets in common-size percents. Note: Do not round intermediate calculations and round your final percentage answers to 1 decimal place. Did profit margin improve or worsen in the Current Year versus 1 Year Ago? Compute total asset turnover for the current year and one year ago. Exercise 13-10 (Algo) Analyzing efficiency and profitability LO P3 The company's income statements for the current year and 1 year ago, follow. For both the Current Year and 1 Year Ago, compute the following ratios: (1-a) Profit margin ratio. (1-b) Did profit margin improve or worsen in the Current Year versus 1 Year Ago? (2) Total asset turnover. (3-a) Return on total assets. (3-b) Based on return on total assets, did Simon's operating efficiency improve or worsen in the Current Year versus 1 Year Ago? Complete this question by entering your answers in the tabs below. Compute profit margin ratio for the current year and one year ago