CACICISE 15 Analyziny TISK diu capilai su ucluie LUPO [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net $ 25,912 78,933 95,389 8,600 239, 318 $ 30,907 $ 32,517 54,628 43, 785 71,473 45, 255 8,032 3,577 221,298 200,066 $ 386,338 $ 325,200 Total assets $448,152 $110,474 $ 63,985 $ 42,926 Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings 85,095 162,500 90,083 $448, 152 87,969 162,500 71,884 70,432 162,500 49,342 Total liabilities and equity $ 386,338 $ 325,200 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 Current Yr $582,598 $355, 385 180,605 9,904 7,574 553,468 1 Yr Ago $ 459, 742 $298,832 116,315 10,574 6,896 432,617 $ 27,125 Net income $ 29,130 Earnings per share $ 1.79 $ 1.67 Exercise 13-9 Part 1 (1) Debt and equity ratios. Debt Ratio Choose Numerator: 1 Choose Denominator: Debt Ratio / II Debt ratio Current Year: / = % 1 Year Ago: / % Equity Ratio Choose Numerator: / Choose Denominator: II Equity Ratio 1 = Equity ratio Current Year: / % 1 Year Ago: II % Exercise 13-9 Part 2 (2) Debt-to-equity ratio. Debt-To-Equity Ratio Choose Numerator: 1 Choose Denominator: II Debt-To-Equity Ratio Debt-to-equity ratio / = Current Year: / II 0 to 1 1 Year Ago: / II 0 to 1 Exercise 13-9 Part 3 (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 3A Required 3B Times interest earned. Times Interest Earned Choose Numerator: 1 Choose Denominator: Il Times Interest Earned 1 Times interest earned = = Current Year: 1 times 1 Year Ago: 1 = times