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 $ 27,338 81, 660 103,689 8,804 251,327 $472,818 $ 33, 260 $ 33, 284 55, 923 46,666 75,406 50, 694 8,560 3,889 234, 453 212,067 $ 407, 602 $ 346, 600 $121,264 $ 68,196 $ 47,124 91,556 162,500 97,498 $472,918 93,748 75,833 162,500 162,500 83, 158 61, 143 $ 407,602 $ 346,600 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 Current Yr $614, 663 $374,944 190,546 10,449 1 Yr Ago $ 485,046 $315, 280 122, 717 11, 156 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 YT $614, 663 $374, 944 190, 546 10,449 7,991 583,930 $ 30,733 1 Ye Ago $ 485,046 $315, 280 122, 717 11, 156 7,276 456, 429 $ 28,617 S 1.76 $ 1.89 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 11 Debt ratio Current Year: 1 Year Ago: / 11 % Equity Ratio 1 Choose Numerator: Choose Denominator: = Equity Ratio Equity ratio Current Year: 1 Year Ago