Simon Company's year-end balance sheets follow. 54,544 72,790 $ 32,467 42,003 46,107 At December 31 Assets Current Year 1 Year Ago 2 Years Ago Cash Accounts receivable, net $ 26,928 77,281 $ 31,168 Merchandise inventory 98,129 Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable 8,247 236,878 8,020 219,222 $ 447,463 Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity $112,532 84,964 $ 385,744 $ 63,887 87,834 162,500 71,523 162,500 87,467 $447,463 $ 385,744 For both the current year and one year ago, compute the following ratios: 3,607 200,516 $ 324,700 $ 42,432 70,324 162,500 49,444 $ 324,700 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 expenses Interest expense Income tax expense Total costs and expenses Net income Earnings per share (1) Debt and equity ratios. 1 Year Ago Current Year $ 581,702 $ 354,838 180,328 $ 298,373 116,136 10,558 6,886 9,889 7,562 552,617 $ 29,085 $ 1.79 (2-a) Compute debt-to-equity ratio for the current year and one year ago. $ 459,035 431,953 $ 27,082 $ 1.67 (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 2B Required 3A Required 3B Compute debt and equity ratio for the current year and one year ago. Debt Ratio Numerator: Total liabilities Current Year: 1 Year Ago: Current Year: 1 Year Ago: Denominator: Debt Ratio Total assets = Debt ratio = 0 % = 0 % Equity Ratio Numerator: Denominator: -Equity Ratio = Equity ratio 1 0% = 0 %