1 Year Ago 2 Years Ago Simon Company's year-end balance sheets follow At December 31 Current Year Assets Cash $ 34,077 Accounts receivable, net 99,743 Merchandise inventory 121,720 Prepaid expenses 10,974 Plant assets, net 305, 342 Total assets $ 571,856 Liabilities and Equity Accounts payable $ 142,392 Long-term notes payable 105,359 Common stock, $10 par value 162,500 Retoined earnings 161,605 Total liabilities and equity $ 571,856 $ 39,833 69,017 88,465 10,249 285,415 $ 492,979 $ 40, 256 55,334 60,717 4,519 258,374 $ 419,200 $ 83,313 114,519 162,500 132,647 $ 492,979 $ 54,228 90,790 162,500 111,682 $ 419,200 The company's income statements for the current year and one year ago, follow. For Year Ended December 31 Current Year 1 Year ARO Sales $ 749,413 $ 586,645 Cost of goods sold $ 453,482 $ 381,319 other operating expenses 230, 458 148,421 Interest expense 12,638 13,493 Income tax expense 9,664 8,800 Total costs and expenses 706, 242 552,033 Net income $ 37,171 $ 34,612 Earnings per share $ 2.29 $ 2.13 12,036 9,664 13,495 8,800 interest expense Income tax expense Total costs and expenses Net income Earnings per share 706, 242 $ 37,171 $ 2.29 552,033 $ 34,612 $ 2.13 (1) Compute debt and equity ratio for the current year and one year ago Debt Ratio Denominator: Numerator Debt Ratio Debt ratio % Current Year: 1 Year Ago: Equity Ratio Numerator: Denominator: Equity Ratio Equity ratio # Current Year: 1 Year Ago