! Required information 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. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 31,800 $ 35,625 $ 37,800 Accounts receivable, net 89,500 62,500 50,200 Merchandise inventory 112,500 82,500 54,000 Prepaid expenses 10,700 9,375 5,000 Plant assets, net 278,500 255,000 230,500 Total assets $523,000 $445,000 $377,500 Liabilities and Equity Accounts payable $129,900 $ 75,250 $ 51,250 Long-term notes payable secured by mortgages on plant assets 98,500 101,500 83,500 Common stock, $10 par value 163,500 163,500 163,500 Retained earnings 131, 100 104,750 79,250 Total liabilities and equity $523,000 $445,000 $377,500 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 $673,500 $411,225 209,550 12,100 9,525 642,400 $ 31,100 $ 1.90 1 Yr Ago $532,000 $345,500 134,980 13,300 8,845 502,625 $ 29,375 $ 1.80 Earnings per share HECT ASSIGNMENT ( Saved Earnings per share $ 1.90 $ 1.80 For both the Current Year and 1 Year Ago, compute the following ratios: Exercise 13-9 Part 3 (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 3A Required 38 Times interest earned. Times Interest Earned Choose Denominator: Choose Numerator: Times Interest Earned Times interest eamed Current Year: times 1 Year Ago: times Red Accounts receivable, net Cost of goods sold Current assets Current liabilities For both the current Year and 1 Year Ago, compute the following ratios: Exercise 13-9 Part 3 05 (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 Complete this question by entering your answers in the tabs below. 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 Times interest oamed 05 Required 3A Required 38 less risky more risky