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 Current Year 1 Year Ago 2 Years Ago Assets Cash $ 25,962 $ 29,463 $ 31,950 Accounts receivable, net 72,323 50,529 42,600 Merchandise inventory 89,096 67,452 45,378 Prepaid expenses 8,279 7,889 3, 446 Plant assets, net 231,556 212,957 193, 026 Total assets $ 427,216 $ 368,290 $ 316,400 Liabilities and Equity Accounts payable $ 107,441 $ 61,619 $ 41,347 Long-term notes payable 77,987 83,860 71,323 Common stock, $10 par value 162,500 162,500 162,500 Retained earnings 79,368 60,311 41,230 Total liabilities and equity $ 427,216 $ 368,290 $ 316,400 The company's income statements for the current year and one year ago, fhllow. For Year Ended December 31 Current Year 1 Year Ago Sales $ 555,381 $ 438, 265 Cost of goods sold $ 338,782 $ 284,872 Other operating expenses 172,168 110,881 Interest expense 9,441 10,080 Income tax expense 7,220 6,574 Total costs and expenses 527,611 412,407 Net income $ 27,770 $ 25,858 Earnings per share $ 1.71 $ 1.59 tes (1) Compute debt and equity ratio for the current year and one year ago. Debt Ratio Denominator: Numerator: 11 Debt Ratio Debt ratio Current Year: 1 Year Ago: % % = % Equity Ratio Denominator: Numerator: Equity Ratio Equity ratio Current Year: 1 Year Ago: % %