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 ets Common stock, $10 par value Retained earnings Total liabilities and equity $ 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 $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 $ 445,000 The company's income statements for the Current Year and 1 Year Ago, follow. For Year Ended December 31 Sales Cost of goods sold Current Yr $797, 220 $486.304 1 Yr Ago $629, 105 $408.918 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 $ 2.45 $ 2.28 Earnings per share 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: Debt-To-Equity Ratio Debt-to-equity ratio 1 AM Other operating expenses Interest expense Income tax expense Total costs and expenses 247, 138 13,553 10,364 159, 164 14,469 9,437 757, 359 $ 39, 861 $ 2.45 591,988 $ 37, 117 Net income $ 2.28 Earnings per share 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: Debt-To-Equity Ratio Debt-to-equity ratio 1 1 to 1 Current Year: to 1 1 Year Ago