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 $ 29,894 88, 410 112,270 9,529 276,914 $517,017 $ 35,656 $ 37,521 62,399 49,027 84,104 53,280 9,453 4,127 254,092 235, 045 $ 445,704 $ 379,000 $ 128,737 $ 73,817 $ 51,029 99,143 162,500 126, 637 $517,017 104,562 81,246 162,500 162,500 104,825 84, 225 $ 445,704 $ 379,000 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 Current Yr $672,122 $409,994 208, 358 11,426 8,738 638,516 $ 33, 606 1 Yr Ago $530,388 $344,752 134,188 12,199 7,956 499,095 $ 31,293 Earnings per share $ 2.07 $ 1.93 For both the Current Year and 1 Year Ago, compute the following ratios: (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 3B Times interest earned. Times Interest Earned Choose Numerator: 1 Choose Denominator: Times Interest Earned 1 11 Times interest earned Current Year: 7 times 1 Year Ago: 1 times (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 3B Based on times interest earned, is the company more or less risky for creditors in the Current Year versus 1 Year Ago? Times interest earned