2 ! Part 1 of 3 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. 125 points Current Yr 1 Ye Ago 2 Yrs Ag eBook At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-tern notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 27,478 82,028 99,129 8,672 248,417 $465,724 $ 32,440 $ 33,461 55,084 45,065 75,760 47,994 8,600 3,831 229,602 211,049 $ 401, 486 $ 341,400 Hint $113,646 $ 66,494 $ 44,164 Print 87,556 162,500 102,022 $465,724 95,112 74,695 162,500 162,500 77,380 60,841 $ 401,486 $ 341,400 References The company's income statements for the Current Year and 1 Year Ago follow. For Year Ended December 31 Current Yr 1 Ye Ago Sales $ 605,441 $ 477,768 Cost of goods sold $369,319 $310,549 Other operating expenses 187,687 120,875 Interest expense 10,292 10,989 Income tax expense 2,871 7.167 Total costs and expenses 575,169 449,580 Net income $ 30,272 $ 28,188 Earnings per share $ 1.86 $ 1.73 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: 1 Choose Denominator: Debt Ratio / Il Current Year: Debt ratio % / 1 Year Ago: = = % Equity Ratio Choose Numerator: Choose Denominator: 11 Equity Ratio Equity ratio % Current Year: 1 Year Ago: H1 %