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. Current Year 1 Year Ago 2 Years Ago At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-ter notes payable Common stock, $10 par value Retained earnings Total liabilities and equity $ 31,933 95,415 117,567 19,708 302,361 $ 557,984 $ 38,097 67,343 91,659 9,899 274.223 $ 481,021 $ 48,485 53,981 57,495 4,454 248,483 $44,900 $ 136,159 106,999 162,500 152326 $ 557,984 $ 81,293 110,635 163,560 125, 593 $ 481,021 $ 53,447 89,483 162, See 99,470 $44,900 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. For Year Ended December 31 Current Year 1 Year ago Sales $ 725,379 $ 572,415 Cost of goods sold 5442,481 $ 372, 07e Other operating expenses 224,867 144,821 Interest expense 12,331 13,166 Income tax expense 9,430 Total costs and expenses 689 189 533.643 Net income $36,270 $ 33,772 Earnings per share $ 2.23 $ 2.08 8.585 (1) 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? (3-6) 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 AS 12,331 Interest expense Income tax expense 9,430 Total costs and expenses 689,109 538,643 $36,270 $ 33,772 Net income 5.2.23 $ 2.08 Earnings per share (1) 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 yea (3-6) 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 Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 28 Required 3A Required 38 Compute debt and equity ratio for the current year and one year ago. Debt Ratio Numerator: Denominator: Debt Ratio Total liabilities 1 Total assets Debt ratio Current Year: S S 1 Year Ago: IS 1 S Equity Ratio Equity Ratio Equity ratio Current Year: 1 Year Ago: Numerator: ** 30.270/ 33,772 13,166 8,586 314,826 289,093 Denominator: Required 2A > 11.5 11.7 0 0 %6 96 % 8,586 9,438 Income tax expense Total costs and expenses 689,109 538,643 $ 33,772 Net income $ 36,270 Earnings per share $ 2.23 $ 2.08 ) 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 (3-0) Times interest earned. (3-b) Based on times interest earned, is the company more or less risky for creditors in the Current Year ve Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Required 3A Required 38 Compute debt-to-equity ratio for the current year and one year ago. Debt-To-Equity Ratio Numerator: Denominator: = = Current Year: 1 Year Ago: Debt-To-Equity Ratio Debt-to-equity ratio 0 to 1 0 to 1 Check my work mode: This shows what is correct ercise 13-9 (Algo) Analyzing risk and capital structure LO P3 company's income statements for the current year and one year ago, follow or Year Ended December 31 Current Year 1 Year Ago ales $ 725,379 $ 572,415 ost of goods sold $ 442,481 224,867 $ 372,070 144,821 ther operating expenses Interest expense 12,331 9,430 13,166 8,586 Income tax expense Total costs and expenses 689,109 $ 36,270 538,643 $ 33,772 Net income $ 2.23 $ 2.08 Earnings per share 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? Answer is not complete. 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. Numerator Denominator: Times Interest Earned Times interest earned Current Year: 0 Smes 1 Year Ago: 0 times Required 38 > Times Interest Earned Required 28 = - - Retained earnings 152,328 Total liabilities and equity $ 557,984 $ 481,021 For both the current year and one year ago, compute the following ratios: Exercise 13-10 (Algo) Analyzing efficiency and profitability LO P3 The company's income statements for the current year and 1 year ago, follow. Current Year 1 Year Ago For Year Ended December 31 Sales $ 725,379 Cost of goods sold $ 442,481 224,867 $ 372,070 144,821 Other operating expenses Interest expense 13,166 12,331 9,430 Income tax expense 8,586 Total costs and expenses Net income 689,109 $ 36,270 $ 2.23 Earnings per share: For both the Current Year and 1 Year Ago, compute the following ratios: (1-0) Profit margin ratio. (1-b) Did profit margin improve or worsen in the Current Year versus 1 Year Ago? (2) Total asset turnover. (3-0) Return on total assets. (3-b) Based on return on total assets, did Simon's operating efficiency improve or worsen in the Current Year versus 1 Yea Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1A Required 18 Required 2 Required 3A Required 38 Compute total asset turnover for the current year and one year ago. Total Asset Turnover Numerator Denominator: Total Asset Turnover Total asset turnover Net sales 1 Average total assets Current Year: $ 0 times 1 Year Ago: times $ 36,270 37 33,772 / 5 484,900 $ 572,415 538,643 $ 33,772 $2.08 0 Total liabilities and equity. $ 557,984 $ 481,821 For both the current year and one year ago, compute the following ratios: Exercise 13-10 (Algo) Analyzing efficiency and profitability LO P3 The company's income statements for the current year and 1 year ago, follow. Current Year 1 Year Ago For Year Ended December 31 Sales $ 725,379 Cost of goods sold $ 442,481 Other operating expenses 224,867 $ 372,878 144,821 13,166 Interest expense 12,331 9,430 Income tax expense 8,586 Total costs and expenses 689,109 Net income $ 36,270 $ 2.23 Earnings per share For both the Current Year and 1 Year Ago, compute the following ratios: (1-a) Profit margin ratio. (1-b) Did profit margin improve or worsen in the Current Year versus 1 Year Ago? (2) Total asset turnover. (3-0) Return on total assets. (3-b) Based on return on total assets, did Simon's operating efficiency improve or worsen in the Current Year versus 1 Year Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1A Required 18 Required 2 Required 3A Required 38 Compute return on total assets for the current year and one year ago. Return On Total Assets Numerator Return On Total Assets Return on total assets 0 Current Year: 1 Year Ago: . = 0 96 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 Current Year 1 Year Ago Assets Cash $ 38,097 Accounts receivable, net $ 31,933 95,415 117,567 67,343 91,659 Merchandise inventory Prepaid expenses Plant assets, net 9,899 10,708 302,361 274,923 Total assets $ 557,984 $ 481,021 Liabilities and Equity Accounts payable $ 136,159. $ 81,293 118,635 Long-term notes payable Common stock, $10 par value 186,999 162,500 163,500 Retained earnings 152,326 125,593 Total liabilities and equity $ 557,984 $ 481,021 For both the current year and one year ago, compute the following ratios: Exercise 13-10 (Algo) Analyzing efficiency and profitability LO P3 The company's income statements for the current year and 1 year ago, follow. Current Year 1 Year Ago For Year Ended December 31 Sales $ 725,379 $ 572,415 Cost of goods sold $ 442,481 Other operating expenses $ 372,070 144,821 224,867 Interest expense 13,166 Income tax expense 12,331 9,430 8,586 Total costs and expenses 689,109 538,643 $ 33,772 Net income $ 36,270 Earnings per share $2.23 $ 2.08 For both the Current Year and 1 Year Ago, compute the following ratios: (1-a) Profit margin ratio. (1-b) Did profit margin improve or worsen in the Current Year versus 1 Year Ago? (2) Total asset turnover. (3-0) Return on total assets. (3-b) Based on return on total assets, did Simon's operating efficiency improve or worsen in the Current Year versus 2 Years Ago $ 40,486 53,981 57,496 4,454 248,483 $ 484,900 $ 53,447 89,483 162,500 99,470 $ 484,900