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 $ 33,212 94,313 124,693 10,587 305,791 $ 568,596 $ 38,037 67,937 93,402 10,191 280,602 2 Years Ago $ 41,664 54,463 59,761 4,448 252,264 $ 412,600 $ 490,169 $ 144,412 $ 82,839 111,611 162,500 133,219 $ 54,463 91,185 162,500 104,452 $ 412,600 Long-term notes payable. Common stock, $10 par value Retained earnings Total liabilities and equity 106,896 162,500 154,788 $ 568,596 $ 490,169 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. Current Year $ 739,175 $ 450,897 229,144 12,566 9,609 1 Year Ago $ 583,301 702,216 $ 36,959 $ 379,146 147,575 13,416 8,750 548,887 $ 34,414 $ 2.27 $ 2.12 es Exercise 13-9 (Algo) Part 1 [Alternate Version] (1) 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 % % Exercise 13-9 (Algo) Part 2 [Alternate Version] (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? Complete this question by entering your answers in the tabs below. Required 2A Required 28 Compute debt-to-equity ratio for the current year and one year ago. Current Year: 1 Year Ago: Numerator: Debt-To-Equity Ratio Denominator: Debt-To-Equity Ratio = Debt-to-equity ratio 1 1 = = Required 2A Required 2B > 0 to 1 0 to 1 Exercise 13-9 (Algo) Part 2 [Alternate Version] (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? Complete this question by entering your answers in the tabs below. Required 2A Required 28 Based on debt-to-equity ratio, does the company have more or less debt in the current year versus one year ago? debt in the current year versus one year ago. Based on debt-to-equity ratio, the company has < Required 2A Required 20 Exercise 13-9 (Algo) Part 3 [Alternate Version] (3-a) Compute times interest earned for the current year and one year ago. (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 3A Required 3B bes Compute times interest earned for the current year and one year ago. Times Interest Earned: Numerator: Denominator: Times Interest Earned Times interest eamed times i Current Year: 1 Year Ago: times Exercise 13-9 (Algo) Part 3 [Alternate Version] (3-a) Compute times interest earned for the current year and one year ago. (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 3A Required 38 Ees 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 eamed, the company is for creditors in the current year versus one year ago