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 Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Current Year 1 Year Ago 2 Years Ago $ 33,088 94,968 119,404 10,449 286,571 $ 37,926 67,027 $ 39,115 88,572 51,632 55,543 9,660 266,194 $ 469,379 $ 544,480 Liabilities and Equity Accounts payable Long-term notes payable $ 136,931 103,386 Common stock, $10 par value 163,500 Retained earnings 140,663 $ 81,705 111,196 163,500 112,978 Total liabilities and equity $544,480 $ 469,379 For both the current year and one year ago, compute the following ratios: Exercise 13-9 (Algo) Analyzing risk and capital structure LO P3 The company's income statements for the current year and one year ago, follow. 4,390 244,420 $ 395,100 $ 53,718 88,190 163,500 89,692 $395,100 Exercise 13-9 (Algo) 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 expensen Interest expense Income tax expense Total costs and expenses Net income Earnings per share (1) Debt and equity ratios. Current Year $ 431,773 219,425 12,033 9,202 $ 707,824 1 Year Ago $ 363,065 141,316 12,847 $558,561 8,378 672,433 $35,391 $2.18 525,606 $ 32,955 $ 2.03 (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 agot (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 A Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Required 3A Required 38 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 1 Required 24 Required 28 Required 3A Required 3B Compute debt-to-equity ratio for the current year and one year ago. Debt-To-Equity Ratio Current Year: 1 Year Ago: Numerator: Denominator: Debt-To-Equity Ratio Debt-to-equity ratio to 1 to 1 5 (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 38 Compute times Interest earned for the current year and one year ago. Current Year: 1 Year Ago: Numerator: Times Interest Earned Denominator: Times Interest Earned Times interest eamed 1 times Smes