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 Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity Current Year 1 Year Ago 2 Years Ago $ 24,781 $ 29,547 $ 30,787 70,388 51,200 41,862 89,402 65,647 43,722 7,821 7,376 3,353 227,632 208,320 188,176 $ 420,024 $ 362,090 $ 307,900 $ 102, 494 76,596 162,500 78, 434 $ 420,024 $ 59,969 84,114 162,500 55,507 $ 362,090 $ 39,424 70,087 162,500 35,889 $ 307,900 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 $ 546,631 $ 430,887 Cost of goods sold $ 333,079 $ 280,077 Other operating expenses 169, 270 109,014 Interest expense 9,283 9,910 Income tax expense 7,098 6,463 Total costs and expenses 518,730 405,464 Net income $ 27,301 $ 25,423 Earnings per share $ 1.68 $ 1.56 (1) Compute debt and equity ratio for the current year and one year ago Debt Ratio 1 Denominator: Numerator: Debt Ratio 11 Debt ratio 11 % Current Year: 1 Year Ago: 11 % Equity Ratio Denominator: Numerator: Equity Ratio Equity ratio 11 Current Year: 11 % 1 Year Ago: = % (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 2B Compute debt-to-equity ratio for the current year and one year ago Debt-To-Equity Ratio Numerator: Denominator Debt-To-Equity Ratio Debt-to-equity ratio Current Year: 1 to 1 1 Year Ago: to 1 C Resulreda Required 20 > Complete this question by entering your answers in the tabs below. Required 2A Required 2B Based on debt-to-equity ratio, does the company have more or less debt in the current year versus one year a Based on debt-to-equity ratio, the company has debt in the current year versus one year ago (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 Complete this question by entering your answers in the tabs below. Required 3A Required 38 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 (Required 3A Het
