7 n 8

[The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ago 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 secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 26,586 75,558 93,119 8,395 233,828 $437, 486 $ 29,568 $ 31,432 53,328 41,486 71,167 46,906 7,841 3,457 215, 239 197,419 $ 377,143 $ 320,700 $ 108,934 $ 62,462 $ 41,486 80,602 162,500 85,450 $437, 486 87,610 71,583 162,500 162,500 64,571 45, 131 $ 377,143 $ 320,700 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 Current Yr $568,732 $ 346,927 176,307 9,668 7,394 540, 296 $ 28, 436 1 Yr Ago $ 448,800 $ 291,720 113,546 10,322 6,732 422, 320 $ 26, 480 Earnings per share $ 1.75 $ 1.63 For both the Current Year and 1 Year Ago, compute the following ratios: (1) Debt and equity ratios. Debt Ratio Choose Numerator: Choose Denominator: Debt Ratio 1 Debt ratio Current Year: 1 = % 1 Year Ago: 1 % Equity Ratio Choose Numerator: 1 Choose Denominator: Equity Ratio Equity ratio 1 = Current Year: 1 % 1 Year Ago: / = % (2) Debt-to-equity ratio. Debt-To-Equity Ratio Choose Numerator: 1 Choose Denominator: 1 Debt-To-Equity Ratio Debt-to-equity ratio 0 to 1 Current Year: 1 1 Year Ago: / 0 to 1