7 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. Part 1 of 2 12.5 points Current Yr 1 Ye Ago 2 Yrs Ago 8 01:25.03 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 $ 30,511 88,430 113,430 9,925 280,864 $522, 360 $36,385 $ 35,694 61,783 47,592 82,474 52,764 9,267 4,847 268,481 227,803 $ 450, 310 $ 367,900 eBook $133,97 $ 73,819 $ 48,077 Hint 99,186 162,500 126,784 $522,360 101,500 82,932 162,500 162,500 112,491 74,391 $ 450,310 $ 367,900 Print The company's income statements for the Current Year and 1 Year Ago follow. References 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 $679,068 $414, 231 210,511 11,544 8,828 645,114 $ 33,954 1 Yr Age $ 535,869 $348, 315 135,575 12,325 8,038 504,253 $ 31,616 $ 1.95 $ 2.09 For both the Current Year and 1 Year Ago, compute the following ratios: 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: Choose Denominator: Debt Ratio Total liabilities 1 Total assets Debt ratio = = Current Year: / 0 % 1 Year Ago: = 0 % / Equity Ratio Choose Numerator: Choose Denominator: Total equity / Total assets 1 = = Equity Ratio Equity ratio 0 % Current Year: = 1 Year Ago: 0 % For both the Current Year and 1 Year Ago, compute the following ratios: Exercise 13-9 Part 2 (2) Debt-to-equity ratio. Debt-To-Equity Ratio Choose Numerator: Choose Denominator: / 11 = Debt-To-Equity Ratio Debt-to-equity ratio 0 to 1 Current Year: TI 1 Year Ago: 11 0 to 1