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 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Current Yr 1 Yr Ago 2 Yrs Ago $ 27,338 81,660 103, 689 $ 33,260 $ 33,284 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 55,923 46,666 75,406 50,694 8,804 251,327 8,560 3,889 234,453 212,067 $472,818 $ 407,602 $346,600 $121,264 $ 68,196 $ 47,124 91,556 93,748 75,833 162,500 97,498 $472,818 162,500 83,158 $ 407,602 $ 346,600 162,500 61,143 The company's income statements for the Current Year and 1 Year Ago, follow. For Year Ended December 31 Sales Current Yr $614,663 Cost of goods sold $374,944 Other operating expenses 190,546 Interest expense 10,449 Income tax expense 7,991 Total costs and expenses 583,930 1 Yr Ago $315,280 122,717 11,156 7,276 $ 485,046 456,429 Income tax expense Total costs and expenses Net income Earnings per share 7,991 7,276 583,930 $ 30,733 456,429 $ 28,617 $ 1.89 $ 1.76 For both the Current Year and 1 Year Ago, compute the following ratios: Exercise 13-9 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 38 Times interest earned. Current Year: 1 Year Ago: Choose Numerator: Income before interest and income tax Times Interest Earned I Choose Denominator: Interest expense $ $ 10,449 = 11,156 = Times Interest Earned Times interest eamed times times