Required information 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 assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant asseta Common stock, $10 par value Retained earnings Total liabilities and equity $ 29,997 88,696 109,310 9,758 275, 795 $513,556 $ 36,126 $ 34,734 63,221 47, 744 82,722 50, 848 9,018 4,018 251,634 224, 356 S 442,721 S 361,700 $129,154 $ 76,316 $ 46,790 94,618 162,500 127,284 $$13,556 101,826 81,534 162,500 162,500 102,079 70,876 $ 442,721 $ 361, 700 The company's income statements for the Current Year and 1 Year Ago, follow. For Year Ended December 31 Sales Cont of goods sold Current Yr $ 667,623 $407/250 1 Yr Ago $ 526,838 $342,445 Retained earnings Total liabilities and equity 127,284 $513,556 102,079 70, 876 $ 442,721 $ 361,700 The company's income statements for the Current Year and 1 Year Ago, follow. For 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 Yr $667, 623 $ 407,250 206,963 11,350 8,679 634,242 $ 33,381 1 Yr Ago $ 526,838 $342, 445 133,290 12,117 7,903 495,755 $ 31,083 S 1.91 $ 2.05 For both the Current Year and 1 Year Ago, compute the following ratios: Exercise 13-9 Part 2 (2) Debt-to-equity ratio. Debt-To-Equity Ratio Choose Numerator: Choose Denominator: Total liabilities Total equity Debt-To-Equity Ratio Debt-to-equity ratio O to 1 Current Year: 1 Year Ago: 0 to 1