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 $ 29,472 88,942 110, 720 9,491 276, 351 $514,976 $ 35,516 $ 35,907 61,531 48, 355 81,309 50,473 9,136 4,069 256,453 223,896 $ 443,945 $ 362,700 $130,794 $ 75,777 $ 48,355 95, 847 162,500 125,835 $514,976 103,128 80,958 162,500 162,500 102,549 70,887 $ 443,945 $ 362,700 The company's income statements for the Current Year and 1 Year Ago, follow. 1 Yr Ago $ 528,25 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 $ 669,469 $408,376 207,535 11,381 8,703 635,995 $ 33,474 $ 2.06 $343, 392 133,659 12,151 7,924 497, 126 $ 31,169 $ 1.92 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 33 Times interest earned Choose Numerator Times Interest Eamed Choose Denominator 1 Current Year: 1 Year Ago: Times Interest End Times interest camned times imes Required 30 > 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? Timon into ouro