Required Information Exercise 13-9 Analyzing risk and capital structure LOP3 [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 $ 32,743 $ 38,649 $ 37,178 Accounts receivable, net 94,899 66,978 49,865 Merchandise inventory 118, 148 85,984 54,414 Prepaid expenses 10,338 9,858 4,257 Plant assets, net 287,955 267,656 238,286 Total assets $544,883 $469, e37 $ 383,280 Liabilities and Equity Accounts payable $138, 186 $ 78,475 $ 58,582 Long-term notes payable secured by mortgages on plant assets 183,310 187,879 82,147 Common stock, $10 par value 162,500 162,500 162, see Retained earnings 140,082 120,183 87,971 Total liabilities and equity $544,883 $ 469,837 $ 383,280 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 $707,388 $ 558,154 Cost of goods sold $431,458 $362,888 Other operating expenses 219,265 141, 213 Interest expense 12,024 12,838 Income tax expense 9,195 8,372 Total costs and expenses 671.942 525, 223 Net income $ 35, 366 $ 32,931 Earnings per share $ 2.18 2.83 $ 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 1 Choose Numerator: Choose Denominator: = Debt Ratio Debt ratio % Current Year: 11 1 Year Ago: % Equity Ratio Choose Numerator: Choose Denominator. = Equity Ratio Equity ratio 96 96 Current Year: 1 Year Ago: (2) Debt-to-equity ratio. Debt-To-Equity Ratio Choose Numerator. 1 Choose Denominator: 1 Debt-To-Equity Ratio Debt-to-equity ratio oto 1 Current Year: 1 Year Ago: 1 Oto 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 38 Times interest earned. Times Interest Earned Choose Numerator: = 1 Choose Denominator: 1 Times Interest Earned Times interest earned Current Year: 1 = times 1 Year Ago: 1 = times Required SA Required 3B >