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Simon Companys year-end balance sheets follow. At December 31 Current Year 1 Year Ago 2 Years Ago Assets Cash $ 26,099 $ 30,507 $ 33,758

Simon Companys year-end balance sheets follow.

At December 31 Current Year 1 Year Ago 2 Years Ago
Assets
Cash $ 26,099 $ 30,507 $ 33,758
Accounts receivable, net 74,871 54,478 43,686
Merchandise inventory 98,018 71,268 46,996
Prepaid expenses 8,491 7,926 3,641
Plant assets, net 243,906 224,946 206,219
Total assets $ 451,385 $ 389,125 $ 334,300
Liabilities and Equity
Accounts payable $ 112,395 $ 65,105 $ 43,686
Long-term notes payable 86,558 91,289 73,141
Common stock, $10 par value 162,500 162,500 162,500
Retained earnings 89,932 70,231 54,973
Total liabilities and equity $ 451,385 $ 389,125 $ 334,300

The companys income statements for the current year and one year ago, follow.

For Year Ended December 31 Current Year 1 Year Ago
Sales $ 586,801 $ 463,059
Cost of goods sold $ 357,949 $ 300,988
Other operating expenses 181,908 117,154
Interest expense 9,976 10,650
Income tax expense 7,628 6,946
Total costs and expenses 557,461 435,738
Net income $ 29,340 $ 27,321
Earnings per share $ 1.81 $ 1.68

For both the current year and one year ago, compute the following ratios:

(2) Compute debt-to-equity ratio for the current year and one year ago.

image text in transcribed

\begin{tabular}{|l|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Debt-To-Equity Ratio } & \multicolumn{2}{|c|}{} \\ \hline & Numerator: & 1 & Denominator: & = & Debt-To-Equity Ratio \\ \hline & & 1 & & = & Debt-to-equity ratio \\ \hline Current Year: & & 1 & & = & 0 to 1 \\ \hline 1 Year Ago: & & 1 & & = & 0 to 1 \\ \hline \end{tabular}

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