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 $ 29,894 88, 410 112,270 9,529 276,914 $517,017 $ 35,656 $ 37,521 62,399 49,027 84,104 53,280 9,453 4,127 254,092 235, 045 $ 445,704 $ 379,000 $ 128,737 $ 73,817 $ 51,029 99,143 162,500 126,637 $517,017 104,562 81,246 162,500 162,500 104,825 84,225 $ 445,704 $ 379,000 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 Current Yr $672,122 $409,994 208, 358 11,426 8,738 638,516 $ 33, 606 1 Yr Ago $530, 388 $344,752 134, 188 12,199 7,956 499,095 $ 31,293 Earnings per share $ 2.07 $ 1.93 For both the Current Year and 1 Year Aco. 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: / % Equity Ratio Choose Numerator: / Choose Denominator: Equity Ratio Equity ratio 1 = Current Year: / = % 1 Year Ago: / %