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 y 1 Ye Ago 2 Yrs Ago Assets Cash $ 30,181 5 37,097 $ 37,135 Accounts receivable, net 92,884 65,556 49,513 Merchandise inventory 115,650 84,105 54,862 Prepaid expenses 10,120 9,643 4,044 Plant assets, net 278,525 258, 220 229 546 Total assets $527.360 $ 454,621 $ 375, 100 Liabilities and Equity Accounts payable $133,939 $ 26,863 549,018 Long-term notes payable secured by mortgages on plant assets 100,135 105,608 81,239 Common stock, $10 par value 162, see 162,500 162,580 Retained earnings 130,786 110,450 82,343 Total liabilities and equity $527, 360 $ 454,621 5 375, 100 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 Earnings per share Current Yr 5685,568 $418,196 212,526 11,655 8,912 651,289 $ 34,279 $ 2.11 1 Ye Ago $ 540,999 $351,649 136,873 12,443 8,115 509,080 $ 31,919 $ 1.96 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 Numerator: Choose Denominator Debt Ratio Debt ratio Current Year: 1 Year Ago: 1 Equity Ratio Choose Numerator: Choose Denominator: Equity Ratio Equity ratio Current Year: 1 Year Ago: Exercise 13-9 Part 2 (2) Debt-to-equity ratio. Debt-To-Equity Ratio Choose Numerator: Choose Denominator. 11 = Debt-To-Equity Ratio Debt-to-equity ratio 0 to 1 0 to 1 11 Current Year: 11 1 Year Ago: Required 3A Required 3B Times interest earned. Times Interest Earned Choose Numerator: Choose Denominator: ### Times Interest Earned Times interest earned 2 times Current Year: 1 Year Ago: times Regud SA Required 3B > Complete this question by entering your answers in the tabs below. Required 3A Required 3B Based on times interest eamed, is the company more or less risky for creditors in the Current Year versus 1 Year Ago? Times interes samed