! Required information [The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. Current Year 1 Year ago 2 Years Ago At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilites and equity $ 31,578 91,523 112,772 10,068 289,283 $ 535,224 $ 37,281 64,596 87,066 9,689 262, 768 $ 461,400 $ 39,207 49,231 55,691 4,187 236, 184 $ 384,500 $ 131,938 99,616 162,500 141, 170 $ 535,224 $ 77,977 107,183 163,500 112,740 $ 461,400 $ 49,739 84, 125 163,500 87, 136 $ 384,500 The company's income statements for the current year and one year ago, follow, For Year Ended December 31 Sales Cost of goods sold other operating expenses Interest expense Income tax expense Total costs and expenses Net income Earnings per share Current Year $ 695,791 $ 424, 433 215,695 11,828 9,045 661,001 $ 34,790 $ 2.14 1 Year Ago $ 549,066 $ 356,893 138,914 12,629 8.236 516,672 $ 32,394 $ 1.99 For both the current year and one year ago, compute the following ratios: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3A Required 3B Compute debt and equity ratio for the current year and one year ago. Debt Ratio Numerator: Denominator: Debt Ratio 11 Debt ratio Current Year: 1 Year Ago: 0 % = 0 % Equity Ratio Numerator: Denominator: Current Year: 1 1 Equity Ratio Equity ratio 0 % 0 % 1 Year Ago: Required 1 Required 2 > (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 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3A Required 38 Compute debt-to-equity ratio for the current year and one year ago Debt-To-Equity Ratie Denominator: Numerator: Debt-To-Equity Ratio Debt-to-equity ratio oto 1 Current Year: 1 Year Ago: 1 0 to 1 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3A Required 38 Compute times interest earned for the current year and one year ago Times Interest Eamed Numerator: Denominator: Times Interest Earned Times interest earned 1 Current Year: / = O times 1 Year Ago: 1 0 times Complete this question by entering your answers in the tabs below. Required 1 Required 2 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? Based on times interest earned, the company is for creditors in the current year versus one year ago
