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 Current Yr 1 yr Ago 2 Yrs Ago Assets Cash $ 26,319 $ 30,764 $ 33,344 Accounts receivable, net 78,568 52,761 44,027 Merchandise inventory 97,825 71, 142 46,434 Prepaid expenses 8,391 8,156 3,633 Plant assets, net 234,977 221,729 199,562 Total assets $446,080 $ 384,552 $ 327,000 Liabilities and Equity Accounts payable $113,295 $ 66,289 $ 43,164 Long-term notes payable secured by mortgages on plant assets 84,702 89,331 73, 712 Common stock, $10 par value 162,500 162,500 162,500 Retained earnings 85,583 66,432 47,624 Total liabilities and equity $446,080 $ 384,552 $ 327,000 The company's income statements for the Current Year and 1 Year Ago, follow. For Year Ended December 31 Current Yr 1 yr ago Sales $579,904 $ 457,617 Cost of goods sold $353, 741 $297,451 Other operating expenses 179,770 115,777 Interest expense 9,858 10,525 Income tax expense 7,539 6,864 Total costs and expenses 550, 908 430,617 Net income $ 28,996 $ 27,000 Earnings per share $ 1.78 $ 1.66 For both the Current Year and 1 Year Ago, compute the following ratios: (1) Debt and equity ratios. Choose Numerator: Debt Ratio 1 1 Choose Denominator: = Debt Ratio Debt ratio % % Current Year: 1 Year Ago: Choose Numerator: Equity Ratio 1 1 Choose Denominator: Equity Ratio Equity ratio % Current Year: 1 Year Ago: % (2) Debt-to-equity ratio. Debt-To-Equity Ratio Choose Numerator: 1 Choose Denominator: / - Debt-To-Equity Ratio Debt-to-equity ratio to 1 to 1 Current Year: 1 Year Ago: 1 1 (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 Denominator Choose Numerator: Times Interest Earned Times interest earned times times 1 Current Year: 1 Year Ago: 1 (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 Based on times interest earned, is the company more or less risky for creditors in the Current Year versus 1 Year Ago? Times interest eamed