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 assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 27,928 80,142 97,741 8,638 254, 219 $ 468, 668 $ 31,352 $ 33, 676 55,998 44,901 75, 492 48,302 8,739 3, 780 232,443 216,441 $ 404,024 $ 347, 100 $116,698 $ 69,646 $ 45, 359 88,110 162,500 101,360 $ 468,668 92,926 75,175 162,500 162,500 78,952 64,066 $ 404,024 $ 347,100 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 Current Yr $609, 268 $371, 653 188,873 10, 358 7,920 578,804 $ 30,464 1 Yr Ago $ 480,789 $312,513 121,640 11,058 7,212 452, 423 $ 28,366 Earnings per share $ 1.87 $ 1.75 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: Debt Ratio Debt ratio Current Year: / % 1 Year Ago: 1 % Equity Ratio Choose Numerator: 1 Choose Denominator: II Equity Ratio Equity ratio / Current Year: 7 % 1 Year Ago: / % Exercise 13-9 Part 2 (2) Debt-to-equity ratio. Debt-To-Equity Ratio Choose Numerator: 1 Choose Denominator: Debt-To-Equity Ratio Debt-to-equity ratio 1 Current Year: / = 0 to 1 1 Year Ago: / 0 to 1 Exercise 13-9 Part 3 (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. Required 3A Required 3B Times interest earned. Times Interest Earned Choose Numerator: 1 Choose Denominator: Times Interest Earned 1 = Times interest earned Current Year: 1 times 1 Year Ago: II times