For year ended December 31

2014

Sales... $673500

Cost of goods sold.... $411225

Other operating expenses... 209550

Interest expense..... 12100

Income tax.... 9525

Total cost and expenses... 642400

Net income.... $31100

Earning per share ....$1.90

2013

Sales....$532000

Cost of goods sold..... $345500

Other operating expenses.... 134980

Interest expense..... 13300

Income expenses... 8845

Total costs and expenses....502625

Net income.... $29375

Earning per share.... $1.80

1. Refer to the Simon company information in exercise 17-7 and 17-9. Compare the companys long-term risk and capital structure positions at the end of 2014 and 2013 by computing these ratios: (1) debt and equity ratios- percent rounded to one decimal, (2) debt-to equity ratio- rounded to two decimals, and (3) times interest earned- rounded to one decimal. Comment on these ratio results.

2. Refer to Simon Companys financial information in exercise 17-7 and 17-9. Evaluate the companys efficiency and profitability by computing the following for 2014 and 2013: (1) profit margin ratio-percent rounded to one decimal, (2) total asset turnover- rounded to one decimal, and (3) return on total assets- percent rounded to one decimal. Comment on these ratio results.