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 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 34,338 $ 40,138 $ 41,392 Accounts receivable, net 100,516 68,134 56,293 Merchandise inventory 125, 129 90,962 61,151 Prepaid expenses 10,947 10, 220 4,645 Plant assets, net 311,065 292, 266 254,619 Total assets $581,995 $ 501,720 $ 418,100 Liabilities and Equity Accounts payable $143,468 $ 84,791 $ 54,637 Long-term notes payable secured by mortgages on plant assets 110,509 116,550 90,552 Common stock, $10 par value 162,500 162,500 162,500 Retained earnings 165, 518 137,879 110,411 Total liabilities and equity $581,995 $ 501,720 $ 418,100 The company's income statements for the Current Year and 1 Year Ago, follow. For Year Ended December 31 Current Yr 1 Yr Ago Sales $756,594 $ 597,047 Cost of goods sold $461,522 $388,081 Other operating expenses 234,544 151,053 Interest expense 12,862 13,732 Income tax expense 9,836 8, 956 Total costs and expenses 718, 764 561,822 Not income $ 37,830 $ 35,225 $ Earnings per share 2.33 $ 2.17 For both the Current Year and 1 Year Ago, compute the following ratios: 234,544 12,862 9,836 151,053 13,732 8,956 Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Earnings per share 718,764 $ 37,830 $ 2.33 561,822 $ 35,225 $ 2.17 For both the Current Year and 1 Year Ago, compute the following ratios: Exercise 13-9 Part 2 (2) Debt-to-equity ratio. Debt-To-Equity Ratio Choose Numerator: 1 Choose Denominator: Total liabilities Total equity 1 1 Debt-To-Equity Ratio Debt-to-equity ratio oto 1 O to 1 Current Year: 1 Year Ago