Simon Company's year-end balance sheets follow. Current Yr 1 Ye Ago 2 Yrs 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 secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 31,393 87,453 111,066 10, 011 276,661 $516,584 $ 35,626 $ 36,740 62,970 46,133 83,210 52,697 9,445 3,884 254, 080 220, 846 $ 445,331 $ 360,300 $127,343 $ 77,519 $ 47,084 99,060 162,500 127,681 $516,584 100,378 77,238 162,500 162,500 184,934 73,478 $ 445,331 $ 360, 380 The company's income statements for the Current Year and 1 Year Ago, follow. For Year Ended December 31 Current Yr 1 Yr Ago Sales $671,559 $ 529,944 Cost of goods sold $489,651 $344,464 Other operating expenses 208,183 134,076 Interest expense 11,417 12, 189 Income tax expense 8,730 7,949 Total costs and expenses 637,981 498,678 Net income $ 33,578 $ 31, 266 Earnings per share $ 2.07 $ 1.92 For both the Current Year and 1 Year Ago, compute the following ratios: (1) Debt and equity ratios. Debt Ratio Choose Numerator: Choose Denominator: Debt Ratio 7 Debt ratio % 11 Current Year: 1 Year Ago: 11 Equity Ratio Choose Numerator: Choose Denominator: = Equity Ratio Equity ratio = = Current Year: 1 Year Ago: 11 % Simon Company's year-end balance sheets follow Current YH 1 Ye Aro 2 Yrs Ago At December 31 Assets Cash Accounts receivable, het Merchandise inventory Prepaid expenses plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 31,393 87,453 111,066 10,011 276,661 $516,584 $ 35,626 $ 36,740 62,970 46,133 83, 210 52,697 9,445 3,884 254, 288 220, 846 $ 445,331 $ 360, 300 $127,343 $ 77,519 $ 47, 084 99,060 162,500 127,681 $516,584 100,378 77,238 162,500 162, see 104,934 73,478 $ 445,331 $ 360,300 The company's income statements for the Current Year and 1 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 Yr $671,559 $489,651 288,183 11,417 8,730 637,981 $ 33,578 $ 2.07 1 Yr Ago $ 529,944 $344,464 134,076 12,189 7,949 498,678 $ 31,266 $ 1.92 For both the Current Year and 1 Year Ago, compute the following ratios. For both the Current Year and 1 Year Ago, compute the following ratios: (2) Debt-to-equity ratio. Debt-To-Equity Ratio Choose Numerator: 1 Choose Denominator: / 511 / 11 = Debt-To-Equity Ratio Debt-to-equity ratio to 1 to 1 Current Year: 11 1 Year Ago: Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs 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 secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 31,393 87,453 111,066 10,011 276,661 $516,584 $ 35,626 $ 36,740 62,970 46,133 83,210 52,697 9,445 3,884 254,080 220, 846 $ 445,331 $ 360, 300 $127,343 $ 77,519 $ 47,884 99,060 162,500 127,681 $516,584 100, 378 77,238 162,500 162,500 184,934 73,478 $ 445,331 $ 368,300 The company's income statements for the Current Year and 1 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 Yr $671,559 $409,651 208,183 11,417 8,730 637,981 $ 33,578 $ 2.07 1 Yr Ago $ 529,944 $344,464 134,076 12, 189 7,949 498,678 $ 31, 266 S 1.92 Help Save & E Che For both the Current Year and 1 Year Ago, compute the following ratios: 3-a) Times interest earned. 13-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 Times interest earned. Times Interest Earned Choose Numerator: 1 Choose Denominator: / Times Interest Earned Times interest eamed / Current Year: Year Ago: = times times Simon Company's year-end balance sheets follow. current Yr 1 Yr Ago 2 Yrs 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 secured by mortgages on plant assets Common stock, sie par value Retained earnings Total liabilities and equity S 31,200 87,600 110,500 10,600 276, eee $515,900 S 36,eee 37,600 62,000 49,500 80,000 54,500 9.350 4,800 249,500 229,800 $436,850 S 375,480 $129,6ee S 74,250 $ 50,600 98,000 163,5ee 124,888 $515,900 101,750 82,400 163,500 163,500 97,350 78,900 $436,850 $ 375,400 The company's income statements for the Current Year and 1 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 Current Yr $755,000 $445,450 234,850 11,900 9,400 7ee, see $ 54,288 $ 3.31 1 Yr Ago $ 630,eee $396,900 151,200 13,500 8,900 579,500 $ 59,500 $ 3.64 Earnings per share For both the Current Year and 1 Year Ago, compute the following ratios: (1-a) Profit margin ratio. (1-b) Did profit margin improve or worsen in the Current Year versus 1 Year Ago? Complete this question by entering your answers in the tabs below. Required 1A Required 1B Profit margin ratio. Choose Numerator: Profit Margin Ratio | Choose Denominator: 1 = Profit Margin Ratio Profit margin ratio = Current Year: 1 Year Ago: 1 ! = Required 1A Required 1B ) [The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs 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 secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 31,200 87,600 118,500 10,600 276,00 $515,900 $ 36,00 $ 37,600 62,800 49,500 8 , 54,500 9,350 4,809 249,500 229, eee $436,850 $ 375, 4ee $129,600 $ 74,250 $ 5e, 98,000 163,500 124,800 $515,900 101,750 82,400 163,500 163,5ee 97,350 78,9ee $436,850 $ 375, 4ee The company's income statements for the Current Year and 1 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 Yr $755,800 $445,450 234,85e 11,900 9,400 700, 800 $ 54,200 3.31 1 Yr Aga $630, eee $396,900 151, 2ee 13,500 8,900 57e, see $ 59,500 $ 3.64 Earnings per share $ 54,200 $ 59,500 $ 3.31 $ 3.64 For both the Current Year and 1 Year Ago, compute the following ratios: (2) Total asset turnover. Choose Numerator: Total Asset Turnover Choose Denominator: Il Total Asset Turnove Total asset turnover 1 Current Year: 11 1 Year Ago: times times (3-a) Times interest earned. 13-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 Times interest earned. Times Interest Earned Choose Numerator: Choose Denominator: Current Year: / Times Interest Earned Times interest eamed times times Year Ago: / Required 3A Required 3B > (2) Total asset turnover. Choose Numerator: Total Asset Turnover Choose Denominator: Total Asset Turnove Total asset turnover Current Year: 1181 1 Year Ago: times times Choose Numerator: Total Asset Turnover Choose Denominator: Current Year: = Total Asset Turnove Total asset turnover times I 1 Year Ago: 11 times