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 $ 26,453 75,901 94,467 8,604 242,923 $448, 348 $ 30,611 $ 31,571 53,570 41,253 70,074 44,831 7,954 3,438 224,298 197,807 $ 386,507 $ 318,900 $109,406 $ 67,279 $ 43,358 86,818 162,500 89,624 $448,348 89,786 71,182 162,500 162,500 66,942 41,860 $ 386,507 $ 318,900 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 $582,852 $355,540 189,684 9,908 7,577 553,709 $ 29, 143 $ 1.79 1 Yr Ago $ 459,943 $298,963 116,366 10,579 6,899 432,807 $ 27,136 $ 1.67 Exercise 13-9 Part 1 (1) Debt and equity ratios. Debt Ratio Choose Numerator: Choose Denominator: Debt Ratio Debt ratio % Current Year: 1 Year Ago: = = % Equity Ratio Choose Numerator: Choose Denominator: = Equity Ratio Equity ratio Current Year: 11 % 1 Year Ago