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 assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 26,595 78,638 96,914 8,478 244,692 $455,317 $ 30,773 $ 33,364 53,853 44,485 71,889 45,509 8,408 3,598 227,592 203,444 $ 392,515 $ 330, 400 $113,374 $ 65,672 S 43,177 86,456 162,500 92,987 $455, 317 90, 278 73,749 162,500 162,500 174,065 50, 974 $ 392,515 $ 330, 400 Kelaineu caining Total liabilities and equity 22,907 $455,317 VUJ JU,27 $ 392,515 $ 330,400 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 $591,912 $361,066 183,493 10,063 7,695 562,317 $ 29,595 $ 1.82 1 Yr Ago $ 467,093 $303, 610 118,175 10,743 7,006 439,534 $ 27,559 $ 1.70 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 Eamed Choose Numerator: 1 Choose Denominator: + = Times Interest Earned Times Interest earned times Current Year: Times interest earned. Times Interest Earned Choose Numerator: 1 Choose Denominator: ! Times Interest Earned Times interest earned times 11 Current Year: 1 Year Ago: times Required 3A Required 3B > Required 3A Requird 38 Based on times interest earned, is the company more or less risky for creditors in the Current Year versus 1 Year Ago? Times interest earned