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 notos payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 31,800 $ 35,625 $ 37,800 89,500 62,500 50,200 112,500 82,500 54,000 10,700 9,375 5,000 278,500 255,000 230,500 $523,000 $445,000 $377,500 $129,900 $ 75,250 $ 51,250 98,500 101,500 83,500 163,500 163,500 163,500 131,100 104,750 79,250 $523,000 $445,000 $377,500 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 Barninga por share Current Yr $673,500 $411, 225 209,550 12,100 9,525 642,400 $ 31,100 $ 1.90 1 Yr Ago $ 532,000 $345,500 134,980 13,300 8,845 502,625 $ 29,375 $ 1.80 For both the Current Year and 1 Year Ago, compute the following ratios: Seved 9,525 8,845 Income tax expense Total costs and expenses Net income Earnings per share 642,400 $ 31,100 502,625 $ 29, 375 S 1.80 $ 1.90 For both the Current Year and 1 Year Ago, compute the following ratios: Exercise 13-9 Part 1 5 (1) Debt and equity ratios. Choose Numerator: Debt Ratio Choose Denominator: Debt Ratio Debt ratio Current Year: 1 Year Ago: % % Equity Choose Numerator: Accounts receivable, net Cost of goods sold Current assets Current liabilities Equity Ratio Equity ratio Current Year: 1 Year Ago: % %