2 Yrs Ago Required Information [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Current Yr Assets Cash $ 31,800 $ 35, 625 Accounts receivable, net 89.500 62,500 Merchandise inventory 112, 500 82.500 Prepaid expenses 10, 700 9, 375 Plant assets, net 278, 500 255,000 Total assets $ 523,000 $ 445,000 Liabilities and Equity Accounts payable $ 129,900 75,250 Long-term notes payable secured by mortgages on plant assets 98,500 101, 500 Common stock, $10 per value 163. 500 163, 500 Retained earnings 131, 100 104, 750 Total liabilities and equity $ 523,000 $ 445,000 $ 37, 800 50, 200 54 000 5,000 230, 500 $ 377, 500 51, 250 83,500 163. 500 79, 250 $ 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 Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Earnings per share Current Yr $ 673, 500 $ 411, 225 209, 550 12. 100 9, 525 642.400 $ 31, 100 $ 1.90 1 Yr Afo $ 532,000 $ 345, 500 134 980 13. 300 8. 845 502, 625 $ 29,375 $ 1.80 For both the Current Year and 1 Year Ago, compute the following ratios: (1) Debt and equity ratios. Debt Ratio Choose Numerator: 1 Choose Denominator: Debt Ratio Total liabilities / Total assets Debt ratio Current Year: 1 S 523,000 % 1 Year Ago: 1 S 445.000 %6 Equity Ratio Choose Numerator: 1 Choose Denominator: Equity Ratio Total equity 1 Total assets Equity ratio Current Year: 1 S 96 523,000 445,000 1 Year Ago: / S %6