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 $ 31,179 93, 103 113,617 10,345 285,545 $533,789 $ 36,445 $ 37,226 66,356 49,144 86,833 52,338 9,663 4,177 260,866 229,415 $ 460,163 $ 372,300 $134,243 $ 76,990 $ 48,161 99,349 162,500 137,697 $533,789 106, 896 83,924 162,500 162,500 113,777 77,715 $ 460, 163 $ 372,300 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 $693,926 $ 423,295 215, 117 11,797 9,021 659, 230 $ 34,696 $ 2.14 1 Yr Ago $ 547,594 $355,936 138,541 12,595 8,214 515, 286 $ 32,308 $ 1.99 For both the Current Year and 1 Year Ago, compute the following ratios: (1) Debt and equity ratios. Debt Ratio Choose Numerator: 1 Choose Denominator: Debt Ratio / Debt ratio Current Year: 7 0 % 1 Year Ago: 1 11 0 % Equity Ratio Choose Numerator: 1 Choose Denominator: Equity Ratio Equity ratio / = Current Year: / 0 % 1 Year Ago: 1 0 %