Required information Exercise 13-9 (Static) Analyzing risk and capital structure LO P3 [Alternate Version] [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Current Year 1 Year Ago 2 Years Ago $ 35,625 62,500 $ 31,800 89,500 112,500 10,700 278,500 $ 523,000 98,500 163,500 131,100 82,500 9,375 255,000 $ 445,000 $ 75,250 101,500 163,500 104,750 $ 523,000 $ 445,000 $ 37,800 50,200 54,000 5,000 230,500 $ 377,500 $ 51,250 83,500 163,500 79,250 $ 377,500 $ 129,900 Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity The company's income statements for the current year and one year ago, follow. For Year Ended December 31 Sales Cost of goods sold Interest expense Income tax expense Other operating expenses Total costs and expenses Net income Earnings per share Current Year $ 673,500 $ 411,225 209,550 12,100 9,525 1 Year Ago $ 532,000 642,400 $ 31,100 $ 1.90 $ 345,500 134,980 13,300 8,845 502,625 $ 29,375 $ 1.80 Exercise 13-9 (Static) Part 3 [Alternate Version] (3-a) Compute times interest earned for the current year and one year ago. (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 Compute times interest earned for the current year and one year ago. Current Year: 1 Year Ago: Numerator: Times Interest Earned Denominator: < Required 3A Required 3B > Times Interest Earne = Times interest earned = times times