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 $ 35,820 103,816 135, 803 11, 768 326, 039 $613, 246 $ 43,139 $ 43,614 74,753 57,565 100,736 63, 190 11, 324 4,993 298, 708 275,638 $ 528, 660 $ 445,000 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 $155, 752 $ 90,237 $ 58, 740 118,749 162,500 176, 245 $613, 246 121,592 100, 312 162,500 162,500 154,331 123, 448 $ 528, 660 S 445,000 The company's income statements for the Current Year and 1 Year Ago, follow. For Year Ended December 31 Sales Current Yr $797, 220 1 Yr Ago $629, 105 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 $797, 220 $486,304 247, 138 13,553 10, 364 757, 359 $ 39, 861 1 Yr Ago $ 629, 105 $408,918 159, 164 14, 469 9,437 591, 988 $ 37, 117 Earnings per share $ 2.45 S 2.28 For both the Current Year and 1 Year Ago, compute the following ratios: Exercise 13-9 Part 1 (1) Debt and equity ratios. Debt Ratio Choose Numerator: 1 Choose Denominator: Debt Ratio 1 Debt ratio Exercise 13-9 Part 1 (1) Debt and equity ratios. Debt Ratio Choose Numerator: I Choose Denominator: Debt Ratio / Debt ratio Current Year: / % 1 Year Ago: 1 % Equity Ratio Choose Numerator: Choose Denominator: Equity Ratio Equity ratio Current Year: % 1 Year Ago: 5 % +