5 Part 4 of 6 0.42 points Skipped Required Information [The following Information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Assets Current Year 1 Year Ago 2 Years Ago eBook Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable $ 25,451 73,028 90,892 8,032 233,978 $ 431,381 79,478 $ 107,414 Long-term notes payable Hint Common stock, $10 par value Total liabilities and equity Print Retained earnings 163,500 80,989 $ 29,453 51,022 70,862 7,731 212,812 $ 371,880 $ 62,848 88,098 163,500 57,434 $ 431,381 $ 371,880 For both the current year and one year ago, compute the following ratios: $ 31,294 41,316 44,446 3,409 189,435 $ 309,900 $ 41,316 67,803 163,500 37,281 $ 309,900 $ 442,537 The company's Income statements for the current year and one 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 Year $ 342,085 173,846 9,534 7,290 $ 560,795 532,755 $ 28,040 $ 1.73 1 Year Ago $ 287,649 111,962 10,178 6,638 416,427 $ 26,110 $ 1.61 (1) Debt and equity ratios. (2-a) Compute debt-to-equity ratio for the current year and one year ago. (2-b) Based on debt-to-equity ratio, does the company have more or less debt in the current year versus one year ago? (3-a) Times Interest earned. (3-b) Based on times Interest earned, is the company more or less risky for creditors in the Current Year versus 1 Year Ago? Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Required 3A Required 38 Compute debt and equity ratio for the current year and one year ago. Current Year: 1 Year Ago: Current Year: 1 Year Ago: Debt Ratio Numerator: Denominator: = Debt Ratio = Debt ratio % % Equity Ratio Numerator: Denominator: = Equity Ratio = Equity ratio = %6 = 96 Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Required 3A Required 3B Compute debt-to-equity ratio for the current year and one year ago. Debt-To-Equity Ratio Current Year: 1 Year Ago: Numerator: 1 1 1 Denominator: = Debt-To-Equity Ratio = Debt-to-equity ratio = to 1 = to 1 Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Required 3A Required 3B Based on debt-to-equity ratio, does the company have more or less debt in the current year versus one year ago? Based on debt-to-equity ratio, the company has debt in the current year versus one year ago. Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Required 3A Required 3B Compute times interest earned for the current year and one year ago. Current Year: 1 Year Ago: Numerator: Times Interest Earned Denominator: 1 1 1 Times Interest Earned = Times interest earned = times = times Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Required 3A Required 3B Based on times interest earned, is the company more or less risky for creditors in the Current Year versus 1 Year Ago? Based on times interest earned, the company is for creditors in the current year versus one year ago