Required information Use the following information for the Exercises below. (Static) [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Current Year 1 Year Ago 2 Years Ago $ 31,800 89,500 112,500 10,700 278,500 $ 523,000 98,500 163,500 131,100 $ 129,900 Long-term notes payable. Common stock, $10 par value Total liabilities and equity Retained earnings $ 523,000 $ 35,625 62,500 82,500 9,375 255,000 $ 445,000 $ 75,250 101,500 163,500 104,750 $ 445,000 For both the current year and one year ago, compute the following ratios: $ 37,800 50,200 54,000 5,000 230,500 $ 377,500 $ 51,250 83,500 163,500 79,250 $ 377,500 Exercise 13-9 (Static) Analyzing risk and capital structure LO P3 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 Current Year $ 411,225 209,550 12,100 $ 673,500 9,525 642,400 1 Year Ago $ 345,500 134,980 13,300 0,845 $532,000 502,625 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 (1) Debt and equity ratios. Current Year $ 673,500 $ 411,225 209,550 12,100 9,525 642,400 $ 31,100 $ 1.90 1 Year Ago $ 345,500 134,900 13,300 8,845 (2-a) Compute debt-to-equity ratio for the current year and one year ago. $532,000 502,625 $29,375 $ 1.80 (2-b) Based on debt-to-equity ratio, does the company have more or less debt in the current year versus one year ago? (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 1 Required 2A Required 28 Required 3A Required 36 Compute debt and equity ratio for the current year and one year ago. Numerator: Total liabilities Current Year: 1 Year Ago: Debt Ratio Denominator: Total assets Du Debt Ratio Debt ratio 0 % 0%