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 $ 26,600 74,804 95,012 8,481 241,483 $ 446,380 $ 31,400 $ 32,061 54,951 41,910 69,054 45,987 7,839 3,527 221,566 194,015 $ 384,810 $ 317,500 $107,814 $ 64,383 $ 42,748 83,919 162,500 92,147 $ 446, 380 86,736 70,869 162,500 162,500 71,191 41,383 $ 384,810 $ 317,500 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 $580,294 $353,979 179,891 9,865 7,544 551,279 $ 29,015 1 Yr Ago $ 457,924 $ 297,651 115,855 10,532 6,869 430,907 $ 27,017 $ 1.79 $ 1.66 Forhath then Exercise 13-9 Part 1 (1) Debt and equity ratios. Debt Ratio Choose Numerator: Choose Denominator: Debt Ratio 11 Debt ratio = Current Year: = % 1 Year Ago: Equity Ratio Choose Numerator: Choose Denominator: = Equity Ratio Equity ratio % = Current Year: % 1 Year Ago