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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

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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 $ 31,800 89,500 112,500 10,700 278,500 $523,000 $ 35,625 $ 37,800 62,500 50,200 82,500 54,000 9,375 5,000 255,000 230,500 $445,000 $377,500 $129,900 $ 75,250 $ 51, 250 98,500 163,500 131,100 $523,000 101,500 83,500 163,500 163,500 104,750 79,250 $445,000 $377,500 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 $ 673,500 $411,225 209,550 12,100 9,525 642,400 $ 31,100 $ 1.90 1 Yr Ago $ 532,000 $345,500 134,980 13,300 8,845 502,625 $ 29,375 $ 1.80 es For both the Current Year and 1 Year Ago, compute the following ratios: Exercise 17-9 Part 1 Exercise 17-9 Part 1 (1) Debt and equity ratios. Debt Ratio Choose Numerator: Choose Denominator: Debt Ratio Debt ratio Current Year: % 1 Year Ago: % Equity Ratio Choose Numerator: Choose Denominator: Equity Ratio Equity ratio Current Year: 1 % 1 Year Ago: 1 % Exercise 17-9 Part 2 (2) Debt-to-equity ratio Debt-To-Equity Ratio 1 Choose Denominator: Choose Numerator: 1 = Debt-To-Equity Ratio Debt-to-equity ratio to 1 to 1 Current Year: 11 1 1 1 Year Ago: Exercise 17-9 Part 3 (3-a) Times interest earned. (3-6) 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 1 Choose Denominator: Times Interest Earned Choose Numerator: Times interest earned times Current Year: times 1 Year Ago: Required 3A Required 3B > Exercise 17-9 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 Based on times interest earned, is the company more or less risky for creditors in the Current Year versus 1 Year Ago? Times interest earned

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