Required information Exercise 17-9 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 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 Current Yr 1 Yr Ago 2 Yrs Ago $ 31,800 $ 35,625 $ 37,800 89,500 62,500 112,500 82,500 50, 200 54,000 10,700 9,375 5,000 278,500 255,000 230,500 $523,000 $445,000 $377,500 $129,900 $ 75,250 $ 51,250 98,500 101,500 163,500 163,500 131,100 104,750 83,500 163,500 79,250 $523,000 $445,000 $ 377,500 For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense The company's income statements for the current year and 1 year ago, follow Current Yr $673,500 1 Yr Ago $345,500 134,980 13,300 8,845 $532,000 $411,225 209,550 12,100 9,525 Total costs and expenses Net income 642,400 $ 31,100 502,625 $ 29,375 Earnings per share $ 1.90 $ 1.80 For both the Current Year and 1 Year Ago, compute the following ratios: For both the Current Year and 1 Year Ago, compute the following ratios: Exercise 17-9 Part 2 (2) Debt-to-equity ratio Choose Numerator: Current assets Current Year: $ 1 Year Ago: Debt-To-Equity Ratio ' Choose Denominator: Current liabilities 244,500 / $ Debt-To-Equity Ratio Debt-to-equity ratio 129,900 = 1.88 to 1 = 0 to 1