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 $ 29,490 82,086 108,528 9,403 265, 377 $494,884 $ 33,106 $ 34,500 59,727 45,999 81,293 51,484 9,138 3,949 243,360 216,068 $ 426,624 $ 352,000 $124, 458 $ 72,820 $ 45,999 95, 829 162,500 112,097 $494,884 95,180 79,348 162,500 162,500 96,124 64,153 $ 426,624 $352,000 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 $643,349 $392,443 199,438 10,937 8,364 611, 182 $ 32, 167 1 Yr Ago $507,683 $329,994 128, 444 11,677 7,615 477,730 $ 29,953 $ 1.98 $ 1.84 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 Choose Numerator Choose Denominator: Debt Ratio Debt ratio Current Year: 1 Year Ago: % % Choose Numerator: Equity Ratio Choose Denominator: Equity Ratio Equity ratio Current Year: % 1 Year Ago: %