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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 $ 26,640 $ 31,139 $ 29,942
Accounts receivable, net 77,974 54,493 41,981
Merchandise inventory 95,154 70,583 45,161
Prepaid expenses 8,324 8,093 3,361
Plant assets, net 238,955 221,077 191,355
Total assets $ 447,047 $ 385,385 $ 311,800
Liabilities and Equity
Accounts payable $ 112,428 $ 63,827 $ 41,981
Long-term notes payable secured by mortgages on plant assets 85,726 91,298 69,597
Common stock, $10 par value 162,500 162,500 162,500
Retained earnings 86,393 67,760 37,722
Total liabilities and equity $ 447,047 $ 385,385 $ 311,800

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

For Year Ended December 31 Current Yr 1 Yr Ago
Sales $ 581,161 $ 458,608
Cost of goods sold $ 354,508 $ 298,095
Other operating expenses 180,160 116,028
Interest expense 9,880 10,548
Income tax expense 7,555 6,879
Total costs and expenses 552,103 431,550
Net income $ 29,058 $ 27,058
Earnings per share $ 1.79 $ 1.67

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(1) Debt and equity ratios. Debt Ratio Choose Numerator: 1 Choose Denominator: Debt Ratio / Debt ratio Current Year: 1 % 1 Year Ago: 1 % Equity Ratio Choose Numerator: / Choose Denominator: Equity Ratio Equity ratio / Current Year: / % 1 Year Ago: / % (2) Debt-to-equity ratio. Debt-To-Equity Ratio Choose Numerator: 1 Choose Denominator: / Debt-To-Equity Ratio Debt-to-equity ratio to 1 Current Year: 1 11 1 Year Ago: / to 1 Required 3A Required 3B Times interest earned. Times Interest Earned Choose Numerator: 1 Choose Denominator: Times Interest Earned / Times interest earned Current Year: / times 1 Year Ago: / times Required 3A Required 3B > Complete this question by entering your answers in the tabs below. Required 3A Required 3B 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

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