! 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. Current Yr 1 Yr Ago 2 Yrs Ago At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant anneta Common stock, $10 par value Retained earnings Total liabilities and equity $ 30,841 90.279 112,385 10,230 278,987 $522,722 $ 37,131 $ 36,440 61,825 47,605 85,866 52, 268 9,747 4,172 256,053 231,315 $ 450,622 $ 371,800 $132,761 $ 77,678 $ 47,605 98,272 262,500 129,189 $ 522,722 100,534 83,811 162,500 162,500 109,910 77,884 $ 450,622 $ 371,800 The company's income statements for the Current Year and 1 Year Ago, follow. For Year Ended December 31 Sales Cont of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Bet income Earnings per share Current YE $ 679,539 $ 414,519 210,657 11,552 8.834 645,562 $ 33,977 1 Yr Ago $536,240 $ 348,556 135, 669 12,334 8,044 504,603 $ 31,637 $ 2.09 $ 1.95 For both the Current Year and 1 Year Ago, compute the following ratios: Exercise 13-9 Part 3 (3-a) Times interest earned. (3-6) 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 A Required 38 Times interest eamed. Times Interest Eamed Choose Numerator: Choose Denominator Times Interest Earned Times interest eamed 7 Current Year times 1 Year Ago: 1 times Haw Required 3B > 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 A Required 38 Based on times interest earned, is the company more or less risky for creditors in the Current Year versus 1 Year Ago? Required 3A less risky more risky 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 A Required 38 Based on times interest earned, is the company more or less risky for creditors in the Current Year versus 1 Year Ago? Required 3A less risky more risky