Required Information Use the following information for the Exercises below. (Algo) [The following Information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Assets Current Year 1 Year Ago 2 Years Ago Cash Accounts receivable, net $ 36,102 104,636 $ 41,373 73,850 Merchandise inventory Prepaid expenses. Plant assets, net Total assets Liabilities and Equity Accounts payable 127,690 11,284 320,194 $ 599,906 95,675 10,643 295,619 $ 517,160 $ 84,778 115,378 162,500 154,504 $ 150,870 Long-term notes payable. Common stock, $10 par value Retained earnings 110,527 163,500 175,009 Total liabilities and equity $ 599,906 $ 517,160 For both the current year and one year ago, compute the following ratios: $ 41,398 57,451 59,985 4,741 263,125 $ 426,700 $ 56,888 97,130 163,500 109,182 $ 426,700 Exercise 17-9 (Algo) Analyzing risk and capital structure LO P3 he 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 Current Year 1 Year Ago $ 779,878 $ 615,420 $ 475,726 241,762 $ 400,023 155,701 13,258 10,138 $ 38,994 740,884 14,155 9,231 579,110 $ 36,310 Earnings per share $ 2.40 $ 2.23 Debt and equity ratios. 2-a) 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 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? Required 1 Required 2A Required 2B Required 3A Required 3B Compute debt and equity ratio for the current year and one year ago. Current Year: 1 Year Ago: Current Year: 1 Year Ago: Debt Ratio Numerator: Denominator: = Debt Ratio = Debt ratio = % % Equity Ratio Numerator: Denominator: Equity Ratio = Equity ratio = % = % Required 1 Required 2A Required 2B Required 3A Required 3B Compute debt-to-equity ratio for the current year and one year ago. Current Year: 1 Year Ago: Numerator: 1 Debt-To-Equity Ratio Denominator: = Debt-To-Equity Ratio = Debt-to-equity ratio. to 1 to 1 Required 1 Required 2A Required 2B Required 3A Required 3B Based on debt-to-equity ratio, does the company have more or less debt in the current year versus one year ago? Based on debt-to-equity ratio, the company has debt in the current year versus one year ago. Current Year: 1 Year Ago: Times Interest Earned Numerator: Denominator: Times Interest Earned = Times interest earned times times 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