Requirea information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Assets Current Year 1 Year Ago 2 Years Ago Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity $ 32,748 95,855 119,337 10,233 291,389 $ 549,562 $ 138,209 101,251 163,500 146,602 $ 549,562 $ 37,143 65,663 85,016 9,750 276,188 $ 473,760 $ 80,065 106,786 163,500 123,409 $ 473,760 For both the current year and one year ago, compute the following ratios: $ 40,258 50,550 57,743 4,256 241,993 $ 394,800 $ 50,550 86,378 163,500 94,372 $ 394,800 Exercise 17-9 (Algo) Analyzing risk and capital structure LO P3 The company's income statements for the current year and one 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 Earnings per share Current Year $ 714,431 $ 435,803 221,474 12,145 9,288 678,710 $ 35,721 $ 2.20 1 Year Ago. $ 563,774 $ 366,453 142,635 12,967 8,457 530,512 $ 33,262 $ 2.05 Cnet at annde ald Required information Total costs and expenses Net income Earnings per share (1) Debt and equity ratios. 125 202 678,710 $ 35,721 366 462 530,512 $ 33,262 $ 2.20 $ 2.05 (2-a) Compute debt-to-equity ratio for the current year and one year ago. (2-b) Based on debt-to-equity ratio, does the company have more or less debt in the current year (3-a) Times interest earned. (3-b) Based on times interest earned, is the company more or less risky for creditors in the Current Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Required 3A Required 3B Compute debt and equity ratio for the current year and one year ago. Debt Ratio Numerator: Total liabilities Current Year: $ 1 Year Ago: $ Denominator: Total assets 239,460 / $ 186,851 / Equity Ratio $ = Debt Ratio = Debt ratio 549,562 = 43.6 % 473,760 = 39.4 % Numerator: Denominator: = Equity Ratio Total equity Total assets = Equity ratio Current Year: $ 310,102 / $ 549,562 = 56.4 % 1 Year Ago: $ 286,909 $ 473,760- 60.6 % 3 Required 1 Required 2A > Total costs and expense Net income Earnings per share $ 35,721 $ 2.20 $ 33,262 $ 2.05 (1) Debt and equity ratios. (2-a) Compute debt-to-equity ratio for the current year and one year ago. (2-b) Based on debt-to-equity ratio, does the company have more or less debt in the current yea (3-a) Times interest earned. (3-b) Based on times interest earned, is the company more or less risky for creditors in the Curre Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Required 3A Required 3B Compute debt-to-equity ratio for the current year and one year ago. Numerator: Total liabilities Current Year: 1 Year Ago: Debt-To-Equity Ratio Denominator: = Debt-To-Equity Ratio Total equity = Debt-to-equity ratio = 0 to 1 0 to 1 Required information Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income: Earnings per share ) Debt and equity ratios. $ 435,803 221,474 12,145 9,288 678,710 $ 35,721 $ 2.20 $ 366,453 142,635 12,967 8,457 2-a) Compute debt-to-equity ratio for the current year and one year ago. 530,512 $ 33,262 $ 2.05 2-b) Based on debt-to-equity ratio, does the company have more or less debt in the current year vers 3-a) Times interest earned. 3-b) Based on times interest earned, is the company more or less risky for creditors in the Current Yea Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 28 Required 3A Required 3B Based on debt-to-equity ratio, does the company have more or less debt in the current year versus one yea Based on debt-to-equity ratio, the company has debt in the current year versus one year ago. rk Tnet at mande eni Required information Total costs and expenses- Net income Earnings per share (1) Debt and equity ratios. 125 202 *ILF 163 Saved 678,710 $ 35,721 530,512 $ 33,262 $ 2.20 $ 2.05 (2-a) Compute debt-to-equity ratio for the current year and one year ago. (2-b) Based on debt-to-equity ratio, does the company have more or less debt in the current year versus one year ago? (3-a) Times Interest earned. (3-b) Based on times interest earned, is the company more or less risky for creditors in the Current Year versus 1 Year Ago? Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 28 Required 3A Required 3B Compute times interest earned for the current year and one year ago. Current Year: 1 Year Ago: Numerator: Times Interest Earned Denominator: Times Interest Earned Times interest earned 0 times 0 times Exercise 17-9 (Algo) Analyzing risk and capital structure LO P3 The company's income statements for the current year and one year ago, follow. For Year Ended December 31 Sales Cost of goods sold. Other operating expenses Interest expense Income tax expense Current Year $435,803 221,474 1 Year Ago $ 563,774 $ 714,431 $ 366,453 142,635 12,967 8,457 678,710 $ 35,721 530,512 $ 33,262 $ 2.20 $ 2.05 Total costs and expenses Net income Earnings per share (1) Debt and equity ratios. 12,145 9,288 (2-a) Compute debt-to-equity ratio for the current year and one year ago. (2-b) Based on debt-to-equity ratio, does the company have more or less debt in the current year versus one (3-a) Times interest earned. (3-b) Based on times interest earned, is the company more or less risky for creditors in the Current Year versi Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Required 3A Required 3B Based on times interest earned, is the company more or less risky for creditors in the Current Year versus 1 Year A Based on times interest earned, the company is for creditors in the current year versus one year ago.