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 Assets Cash Current Yr 1 Yr Ago 2 Yrs Ago Accounts receivable, net Merchandise inventory Prepaid expenses $ 36,490 183,624 $ 43,516 $ 42,253 74,644 58,080 134,317 99,634 61,855 11,632 11,084 4,937 Plant assets, net 338,667 309,682 272,875 Total assets $624,730 $538,560 $440,000 Liabilities and Equity Accounts payable $155,558 $ 88,286 $ 57,499 Long-term notes payable secured by mortgages on plant assets 115,100 121,391 96,268 Common stock, $10 par value 162,500 162,500 162,500 Retained earnings 191,572 166,383 123,733 Total liabilities and equity $624,730 $ 538,560 $ 440,000 For Year Ended December 31 The company's income statements for the Current Year and 1 Year Ago, follow. Sales 1 Yr Ago $ 640,886 Current Yr $812,149 Cost of goods sold $495,411 $416,576 Other operating expenses 251,766 Interest expense 13,807 Income tax expense 10,558 162,144 14,748 9,613 Total costs and expenses 771,542 Net income $ 40,607 603,073 $ 37,813 Earnings per share $ 2.50 $ 2.33 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 3B Times interest earned. Times Interest Earned Choose Numerator: Income before interest and income tax Choose Denominator: Interest expense Current Year: $ 1 Year Ago Times Interest Earned Times interest eamed 13,807 times 14,740 times Required 38 >