8 Part 1 of 3 Required information Exercise 13-9 Analyzing risk and capital structure LOP3 {The following information applies to the questions displayed below. Simon Company's year-end balance sheets follow. 0.71 points Current Yr 1 Yr Ago 2 Yrs Ago eBook 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 $ 33,061 95,820 122,885 10, 434 298,150 $560, 350 $ 38,258 $ 40,674 69,657 53,137 86,685 58,930 9,840 4,702 278,620 257,557 $ 483,060 $ 415,000 Hint $135, 341 $ 81,637 $ 55,876 Print 105, 346 162,500 157,163 $560,356 111,104 88,964 162,500 162.5ee 127,819 107,660 $ 483, 860 $ 415,000 . References 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 $728,455 $444,358 225,821 12,384 9,470 692,033 $ 36,422 2.24 1 yr Ago $ 574,841 $373,647 145,435 13,221 8,623 540,926 $ 33,915 $ 2.09 For both the Current Year and 1 Year Ago, compute the following ratios: Exercise 13-9 Part 1 Exercise 13-9 Part 1 (1) Debt and equity ratios. Debt Ratio Choose Numerator: Choose Denominator: Debt Ratio Net sales / Total assets Debt ratio Current Year: / $ 560,350 II % 1 Year Ago: / 0 % Equity Ratio Choose Numerator: Choose Denominator: Equity Ratio Equity ratio = Current Year: / = 0 % 1 Year Ago: / 0 %