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 1 Yr Ago 2 Yrs Ago Assets Cash $ 36,823 $ 42,182 $ 43,095 Accounts receivable, net 108,858 73,818 55,736 Merchandise inventory 136,869 102,522 61,194 Prepaid expenses 11,858 11,638 4,884 Plant assets, net 329,708 307,871 270,391 Total assets $ 624,116 $ 538,031 $ 435,300 Liabilities and Equity Accounts payable $ 160,067 $ 90,018 $ 58,609 Long-term notes payable secured by mortgages on plant assets 119,680 124,985 96,201 Common stock, $10 par value 162,500 162,500 162,500 Retained earnings 181,869 160,528 117,990 Total liabilities and equity $ 624,116 $ 538,031 $ 435,300 The companys income statements for the Current Year and 1 Year Ago, follow. For Year Ended December 31 Current Yr 1 Yr Ago Sales $ 811,351 $ 640,257 Cost of goods sold $ 494,924 $ 416,167 Other operating expenses 251,519 161,985 Interest expense 13,793 14,726 Income tax expense 10,548 9,604 Total costs and expenses 770,784 602,482 Net income $ 40,567 $ 37,775 Earnings per share $ 2.50 $ 2.32 For both the Current Year and 1 Year Ago, compute the following ratios: (1) Debt and equity ratios. For both the Current Year and 1 Year Ago, compute the following ratios: (1) Debt and equity ratios. (2) Debt-to-equity ratio. (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?

[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 $ 36, 822 108,858 136,869 11,85e 329,706 $624, 116 $ 42,182 $ 42,095 73,818 55,736 102, 522 61,194 11,638 4,884 207,871 270, 391 $ 528,021 $ 435,300 $160,067 $ 90,018 5 5e, 609 Total assets Liabilities and Equity decounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earning- Total liabalsties and equity 119,600 162,500 181, 869 124,985 22,500 160,528 96,201 162,500 127,990 $24,216 $ 538, 08: S 435, 300 The company's Income statements for the Current Year and 1 Year Ago follow. S 640.257 For Year Ended December 31 Sale: dose of goods sold Othe: cperating expenses Interest expense Income tax expense Total cost and expenses Net sneeme Curreno Yr S1811, 351 $494, 924 251,519 16,193 10.545 770.84 5 40.367 5416,165 161.988 14,26 60242 537, 775 Earning: fehase For both the Current Year and 1 Year Ago, compute the following ratios