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. 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 $ 25,825 72,648 94,109 8,154 228, 398 $429,134 29,595 $ 29,904 51,792 41,516 70,493 45,103 7,613 3,391 210,450 191, 486 $ 369,943 $ 311,400 $104,717 $ 64,396 $ 41,927 83,098 162,500 78,819 $429,134 83, 385 69,508 162,500 162,500 59,662 37,465 $ 369,943 $ 311,400 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 $557,874 $340, 303 172,941 9,484 7,252 529,980 $ 27,894 1 Yr Ago $ 440, 232 $286,151 111,379 10,125 6,603 414,258 $ 25,974 Net income Earnings per share $ 1.72 $ 1.60 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: 1 Choose Denominator: Debt Ratio Debt ratio (1) Debt and equity ratios. Debt Ratio Choose Numerator: Choose Denominator: Debt Ratio Debt ratio Current Year: 1 Year Ago: Equity Ratio Choose Numerator: 1 Choose Denominator: Equity Ratio Equity ratio Current Year: % 1 Year Ago: %