Required information Exercise 13-9 (Algo) Analyzing risk and capital structure LO P3 [Alternate Version] [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Current Year 1 Year Ago 2 Years Ago $ 37,178 65,733 $ 41,543 87,748 $ 33,118 94,084 118,293 10,348 299,915 $ 555,758 10,262 278,181 $ 479,102 Long-term notes payable Common stock, $10 par value Retained earnings $ 138,384 104,483 162,500 150,391 $ 81,778 109,092 162,500 125,732 Total liabilities and equity $ 555,758 $ 479,102 52,163 56,694 4,481 252,519 $ 407,400 $ 53,239 92,736 162,500 98,925 $ 407,400 The company's income statements for the current year and one year ago, follow. For Year Ended December 31 Sales Cost of goods sold Interest expense Income tax expense Other operating expenses Total costs and expenses Net income Earnings per share Current Year $ 722,485 $ 440,716 1 Year Ago $ 570,131 223,970 12,282 9,392 686,360 $ 36,125 $ 2.22 $ 370,585 144,243 13,113 8,552 536,493 $ 33,638 $ 2.07 Exercise 13-9 (Algo) Part 2 [Alternate Version] (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? Complete this question by entering your answers in the tabs below. Required 2A Required 2B Compute debt-to-equity ratio for the current year and one year ago. Current Year: 1 Year Ago: Numerator: Debt-To-Equity Ratio Denominator: = Debt-To-Equity Ratio Debt-to-equity ratio = 0 to 1 0 to 1 < Required 2A Required 2B >