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Required information Skip to question [The following information applies to the questions displayed below.] Simon Companys year-end balance sheets follow. At December 31 Current Yr

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[The following information applies to the questions displayed below.] Simon Companys year-end balance sheets follow.

At December 31 Current Yr 1 Yr Ago 2 Yrs Ago
Assets
Cash $ 24,872 $ 29,073 $ 30,890
Accounts receivable, net 72,086 51,895 39,975
Merchandise inventory 88,821 65,886 43,003
Prepaid expenses 8,250 7,861 3,466
Plant assets, net 227,525 208,694 188,566
Total assets $ 421,554 $ 363,409 $ 305,900
Liabilities and Equity
Accounts payable $ 108,116 $ 62,644 $ 40,783
Long-term notes payable secured by mortgages on plant assets 80,045 82,748 67,604
Common stock, $10 par value 162,500 162,500 162,500
Retained earnings 70,893 55,517 35,013
Total liabilities and equity $ 421,554 $ 363,409 $ 305,900

The companys income statements for the Current Year and 1 Year Ago, follow.

For Year Ended December 31 Current Yr 1 Yr Ago
Sales $ 548,020 $ 432,457
Cost of goods sold $ 334,292 $ 281,097
Other operating expenses 169,886 109,412
Interest expense 9,316 9,947
Income tax expense 7,124 6,487
Total costs and expenses 520,618 406,943
Net income $ 27,402 $ 25,514
Earnings per share $ 1.69 $ 1.57

For both the Current Year and 1 Year Ago, compute the following ratios:

(1) Debt and equity ratios.

Debt Ratio
Choose Numerator: / Choose Denominator: = Debt Ratio
/ = Debt ratio
Current Year: / = 0 %
1 Year Ago: $78 / = 0 %
Equity Ratio
Choose Numerator: / Choose Denominator: = Equity Ratio
/ = Equity ratio
Current Year: / = 0 %
1 Year Ago: / = 0 %

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