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. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses $ 35,761 $ 42,211 $ 43,987 104,662 72,434 56,924 126,482 93,822 63,092 11,177 10,542 4,792 Plant assets, net 316,147 293,257 266,805 Total assets $594,229 $512,266 $435,600 Liabilities and Equity Accounts payable $146,483 $ 86,573 $ 58,074 Long-term notes payable secured by mortgages on plant assets 112,832 120,178 93,380 Common stock, $10 par value 162,500 162,500 162,500 Retained earnings 172,414 Total liabilities and equity $594,229 143,015 $512,266 $435,600 121,646 The company's income statements for the Current Year and 1 Year Ago, follow. 1 Yr Ago $396,238 154,228 14,021 9,144 $609,597 For Year Ended December 31 Current Yr Sales $772,498 Cost of goods sold $471,224 Other operating expenses 239,474 Interest expense 13,132 Income tax expense 10,042 Total costs and expenses Net income 733,872 $ 38,626 Earnings per share $ 2.38 $ 2.21 573,631 $ 35,966 For both the Current Year and 1 Year Ago, compute the following ratios: