Required information [The following information applies to the questions displayed below] Simon Company's year-end balance sheets follow. At December 31 Assets Cash Current Year 1 Year 2 Years Ago Ago $ 29,901 35,294 36,036 85,811 59,965 46,182 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 liabilities and equity 104,687 80,824 50,685 9,629 9,175 3,887 243,063 216,610 S 266,824 $ 496,852 428,321 353,400 $ $ 122,479 71,662 47,582 91,540 163,500 163,500 163,580 100,484 76,539 119,333 92,675 65,779 $ $ 496,852 428,321 353,400 For both the current year and one year ago, compute the following ratios: The company's income statements for the current year and one year ago, follow. For Year Ended December 31 Current Year 1 Year Ago Sales 645,908 589,782 $ Cost of goods sold 394,004 331,306 Other operating 200,231 128,955 expenses Interest expense 10,988 Income tax expense 8,397 11,723 7,646 Total costs and 613,612 479,630 expenses Net income $ 32,296 $ 38,072 Earnings per share $1.99 $1.85 (1) Debt and equity ratios (2-) Compute debt-to-equity ratio for the current year and one year ago (2-b) Based on debt-to-equity ratio, does the company have more or less debt in the current year versus (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? Complete this question by entering your answers in the tabs below. Required Required Required Required Required 1 2A 28 38 Compute debt and equity ratio for the current year and one year ago. Numerator: Total liabilibes Current Year: 1 Year Ago: Numerator Current Year: 1 Year Ago: Total equity Debt Ratio Denominator Total assets Equity Ratio Denominator: Total assets Debt Ratio Debt ratio Equity Ratio Equity ratio Required Required Required Required Required 1 2A 2B 3A 3B Compute debt-to-equity ratio for the current year and one year ago. Debt-To-Equity Ratio Numerator: Denominator: Total liabilities / Total equity Current Year: 1 Year Ago: Debt-To-Equity Ratio Debt-to-equity ratio = 0 to 1 0 to 1 Required Required Required Required Required 1 2A 2B 3A 3B Compute times interest earned for the current year and one year ago. Times Interest Earned Times interest earned Times Interest Earned Numerator: Denominator: Income before interest expense and income tax expense Interest expense Current / $ 10,980 = times Year: 1 Year Ago: / $ 11,723 = times