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. walance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 33,081 $ 39,055 $ 39, 478 Accounts receivable, net 95,879 69, 701 53,701 Merchandise inventory 124,167 90,316 57,198 Prepaid expenses 10,334 9,948 4,431 Plant assets, net 297,237 274,340 247,992 Total assets $560,698 $ 483,360 $ 402,800 Liabilities and Equity Accounts payable $142,406 $ 80,054 $ 54,233 Long-term notes payable secur mortgages on plant assets 104,357 107,838 87,238 Common stock, $10 par value 162,500 162,500 162,500 Retained earnings 151, 435 132,968 98,829 Total liabilities and equity $560, 698 $ 483,360 $ 402,800 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 $728,907 $444,633 225,961 12,391 9.476 692, 461 1 Yr Ago $ 575, 198 $373, 879 145, 525 13,230 8.628 541,262 $ 33.936 $36,446 Earnings per share $ 2.24 $ 2.09 For both the Current Year and 1 Year Ago, compute the following ratios: >999,055 225,961 12.391 9,476 >>373,872 145,525 13,230 8.628 COST Or goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Earnings per share 692.461 541, 262 $ 33,936 $36.44 $ 2.09 For both the Current Year and 1 Year Ago, compute the following ratios: Exercise 13-9 Part 1 (1) Debt and equity ratios. Debt Ratio 1 Choose Denominator Choose Numerator: = Debt Ratio Debt ratio Current Year: 1 Year Ago: Equity Ratio 1 Choose Denominator: Choose Numerator: = Equity Ratio Equity ratio Current Year: 1 Year Ago