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. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 31,800 $ 35,625 $ 37,809 Accounts receivable, net 89,500 62,500 50,200 Merchandise inventory 112,500 82,500 54,000 Prepaid expenses 10,700 9,375 5,000 Plant assets, net 278,500 255,000 230,500 Total assets $523,000 $445,000 $377,500 Liabilities and Equity Accounts payable $129,900 $ 75,250 $ 51,250 Long-term notes payable secured by mortgages on plant assets 98,500 101,500 83,500 Common stock, $10 par value 163,500 163,500 163,500 Retained earnings 131,100 104,750 79,250 Total liabilities and equity $523,000 $445,000 $ 377,500 The company's income statements for the current year and 1 year ago, follow. For Year Ended December 31 Sales Cost of goods sold Current Yr $ 673,500 $411,225 1 Yr Ago $ 532,000 $345,500 The company's income statements for the current year and 1 year ago, follow. For Year Ended December 31 Current Yr 1 Yr Ago Sales $ 673,500 $ 532,000 Cost of goods sold $ 411,225 $345,500 Other operating expenses 209,550 134,980 Interest expense 12,160 13,300 Income tax expense 9,525 8,845 Total costs and expenses 642,400 502,625 Net income $ 31,100 $ 29,375 Earnings per share $ 1.90 $ 1.80 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