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 $ 25,928 75,906 95,438 8,265 238,360 $443,897 $ 31,532 $ 32,537 54,645 42,953 69,378 46,207 8,036 3,472 219,079 200,231 $ 382,670 $ 325,400 $112,741 $ 62,731 $ 43,382 81,784 162,500 86,872 $443,897 86,254 69,756 162,500 162,500 71,185 49,762 $ 382,670 $ 325,400 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 $577,066 $352,010 178,890 9,810 7,502 548,212 $ 28,854 $ 1.78 1 Yr Ago $ 455, 377 $295,995 115,210 10,474 6,831 428,510 $ 26,867 $ 1.65 For both the Current Year and 1 Year Ago, compute the following ratios: 20,034 Net income Earnings per share $ 1.78 $ 1.65 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 % 1 Year Ago: 1 %