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 $ 31,705 94,703 121, 429 10.418 290,083 $548,338 $ 38,195 $ 38,604 67,502 53,573 87,450 55,937 9,828 4, 377 269,730 245, 409 $ 472,705 $ 397,900 $136,536 $ 79,088 $ 53,048 102,057 162,500 147,245 $548,338 107,635 87,057 162,500 162,500 123, 482 95,295 $ 472, 705 $ 397,900 The company's income statements for the Current Year and 1 Year Ago, follow. 1 Yr Ago $ 562,519 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 $712,839 $434,832 220,980 12.118 9,267 677,197 $ 35,642 $365, 637 142,317 12,938 8.438 529,330 $ 33, 189 $ 2.04 $ 2.19 For both the Current Year and 1 Year Ago, compute the following ratios: 220,980 12,118 9,267 14231) 12,938 8,438 Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Earnings per share 677,197 $ 35,642 $ 2.19 529,330 $ 33,189 $ 2.04 For both the Current Year and 1 Year Ago, compute the following ratios: Exercise 13-9 Part 2 (2) Debt-to-equity ratio. Debt-To-Equity Ratio Choose Numerator: Choose Denominator: - Debt-To-Equity Ratio Debt-to-equity ratio Current Year: 1 Year Ago: 4 5 6 7 TY U I $ 33,189 Net income Earnings per share 1 2 $ 2.04 .04 For both the Current Year and 1 Year Ago, compute the following ratios: Exercise 13-9 Part 3 (3-a) Times interest earned. (3-6) Based on times interest earned, is the company more or less risky for creditors in the Current Year versus 1 Year A Complete this question by entering your answers in the tabs below. Required 3A Required 38 Based on times interest earned, is the company more or less risky for creditors in the Current Year versus 1 Year Ago? Times interest earned