Exercise 13-9 (Algo) Analyzing risk and capital structure LO P3 (Alternate Version) - [The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow, At December 31 Current Year 1 Year Ago 2 Years Ago Assets Cash $ 25,962 $ 29,463 $ 31,950 Accounts receivable, net 72,323 50,529 42,600 Merchandise inventory 89,096 67,452 45,378 Prepaid expenses 8,279 7,889 3,446 Plant assets, net 231,556 212,957 193, 026 Total assets $ 427,216 $ 368,290 $ 316,400 Liabilities and Equity Accounts payable $ 107,441 $ 61,619 $ 41,347 Long-term notes payable 77,907 83,860 71,323 Common stock, $10 par value 162,500 162,500 Retained earnings 162,500 79,368 60,311 41,230 Total liabilities and equity $ 427,216 $ 368,290 $ 316,400 The company's income statements for the current year and one year ago follow. For Year Ended December 31 Current Year 1 Year Ago Sales Cost of goods sold $ 555,381 $ 338,782 $ 438,265 $ 284,872 Other operating expenses 172,168 Interest expense 110,881 9,441 10,080 Income tax expense 7,220 6,574 Total costs and expenses 527,611 412, 407 Net income $ 27,770 $ 25,858 Earnings per share $ 1.71 $ 1.59 Exercise 13-9 (Algo) Part 3 [Alternate Version) 13 (3-a) Compute times interest earned for the current year and one year ago (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 38 in Compute times interest earned for the current year and one year ago Times Interest Eamed Numerator Denominator Current Year Times Interest Earned Times interest earned times rences 1 Year Age: 1 mes Required 30 > Exercise 13-9 (Algo) Part 3 (Alternate Version] (3-a) Compute times interest earned for the current year and one year ago. (3-6) Based on times interest earned, is the company more or less risky for creditors in the Current Year versus 1 Year Ago? Book Complete this question by entering your answers in the tabs below. Hint Required 3A Required 38 Based on times interest earned, is the company more or less risky for creditors in the Current Year versus 1 Year Ago? Based on times interesteamed, the company is for creditors in the current year versus one year ago Required JA Print References