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Required information [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

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Required information [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 Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity $ 37,161 109,857 132,707 11,728 338,388 $629, 841 $ 43,003 $ 43,477 76,015 57,970 100,449 64,881 11,516 4,782 311,983 272, 490 $ 542,966 $ 443,600 $161,535 120,778 162,500 185,028 $629,841 $ 92,679 $ 60,312 123,633 98,036 162,500 162,500 164, 154 122,752 $ 542,966 $ 443,600 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 Yr $818,793 $499,464 253,826 13,919 10,644 777,853 $ 40,940 $ 2.52 1 Yr Ago $646,130 $419,985 163,471 14,861 9,692 608, 009 $ 38, 121 $ 2.35 For both the current year and one year ago, compute the following ratios: (1) Debt and equity ratios. Choose Numerator: Total liabilities Debt Ratio Debt ratio 1 Current Year: 1 Year Ago: Debt Ratio 1 Choose Denominator: Total assets / 7 Equity Ratio 1 Choose Denominator: 11 0 % 11 0 % Choose Numerator: Equity Ratio Equity ratio Current Year: 1 Year Ago: 0 % 11 0 % For both the current year and one year ago, compute the following ratios: (2) Debt-to-equity ratio. Debt-To-Equity Ratio Choose Numerator: 1 Choose Denominator: / Current Year: Debt-To-Equity Ratio Debt-to-equity ratio 0 to 1 0 to 1 1 Year Ago: 1 11 (3-a) Times interest earned, (3-6) Based on times interest eamed, 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 JA Required 38 Times Interest earned Choose Numerator: Times Interest Earned Choose Denominator Current Year 1 Year Ago Times Interest Earried Times interest comed O times Osimes

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