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-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity $ 33,232 97,261 119.913 10,702 291,104 $ 552.212 $36.941 67,979 86,307 10,297 274,521 $ 476,045 $ 40,877 52.365 56,332 4,453 250.773 $ 404,800 $ 138,876 105,892 162,500 144,944 $ 552.212 $ 79,647 109,490 162,500 124,408 $ 476,045 $ 53,968 87,672 162,500 100,660 $ 404,800 Award: 10.00 points 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 $ 717.876 $ 566,494 Cost of goods sold $ 437,904 $368,221 Other operating expenses 222,542 143,323 Interest expense 12,204 13,029 Income tax expense 9,332 8,497 Total costs and expenses 681,982 533,070 Net income $ 35,894 $ 33,424 Earnings per share $ 2.21 $ 2.06 For both the current year and one year ago, compute the following ratios: (1) Debt and equity ratios. (2) Debt-to-equity ratio. (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 Ag For both the current year and one year ago, compute the following ratios: (1) Debt and equity ratios. (2) Debt-to-equity ratio (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 2 Required 3A Required 38 Compute debt and equity ratio for the current year and one year ago Debt Ratio Denominator: Numerator: Debt Ratio Debt ratio Current Year: 1 Year Ago: Equity Ratio Denominator: Numerator: Equity Ratio Equity ratio Current Year: 1 Year Ago: . % Roquired Required 2 > For both the current year and one year ago, compute the following ratios: (1) Debt and equity ratios (2) Debt-to-equity ratio. (3-a) Times interest earned. (3-6) 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 2 Required 3A Required 38 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 Year Ago: 1 to 1 to 1 For both the current year and one year ago, compute the following ratios: (1) Debt and equity ratios, (2) Debt-to-equity ratio (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 2 Required 3A Required 38 Compute times interest earned for the current year and one year ago. Times Interest Esmed Numerator: Denominator: Times Interest Earned Times Interest eamed times times Current Year 1 Year Ago: 1
