7 1 Part 3 of 5 points eBook Hint Ask Print Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. 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 Common stock, $10 par value Retained earnings Total liabilities and equity Current Year 1 Year Ago 2 Years Ago $ 33,206 91,524 116,261 10,589 300,203 $ 551,783 $136,020 104,773 162,500 148,490 $ 39,196 64,597 89,760 9,689 272,433 $ 475,675 $ 82,801 109,405 163,500 119,969 $ 40,829 53,381 55,720 4,360 246,110 $ 400,400 $ 53,910 85,834 162,500 98,156 $ 400,400 $ 551,783 $ 475,675 For both the current year and one year ago, compute the following ratios: References Exercise 17-9 (Algo) Analyzing risk and capital structure LO P3 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 (1) Debt and equity ratios. Current Year $ 717,318 $ 437,564 222,369 12,194 9,325 681,452 $ 35,866 $ 2.21 1 Year Ago $ 367,934 143,211 13,019 8,491 (2-a) Compute debt-to-equity ratio for the current year and one year ago. $ 566,053 532,655 $ 33,398 $ 2.06 (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 3B 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 % % < Required 1 Required 2A >