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 $ 25,539 74,753 93,067 8,143 227,081 $428,583 $ 29,262 $ 31,713 52,243 39,820 67,668 45,045 7,604 3,387 212,691 191,035 $ 369,468 $ 311,000 $104,583 $ 61,191 $ 40,231 79,768 162,500 81,732 $428,583 82,428 68,731 162,500 162,500 63,349 39,538 $ 369, 468 $ 311,000 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 $557,158 $339,866 172,719 9,472 7,243 529, 300 $ 27,858 $ 1.71 1 Yr Ago $ 439,667 $285,784 111,236 10,112 6,595 413,727 $ 25,940 1.60 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: Exercise 13-9 Part 1 (1) Debt and equity ratios. Debt Ratio Choose Numerator: Choose Denominator: Debt Ratio Total assets Current liabilities Debt ratio nces 0 % Current Year: 1 Year Ago: Equity Ratio Choose Numerator: Choose Denominator: Equity Ratio Equity ratio 096 0 % Current Year: 1 Year Ago: Exercise 13-9 Part 2 (2) Debt-to-equity ratio. Debt-To-Equity Ratio Choose Numerator: Choose Denominator: Debt-To-Equity Ratio Debt-to-equity ratio Ito 1 Current Year: 1 Year Ago: to 1 Exercise (3-6) 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 Complete this question by entering your answers in the tabs below. Required 3A Required 38 Times interest earned. Times Interest Earned Choose Numerator: Choose Denominator: Times Interest Earned Times interest earned times times Current Year: 1 Year Ago: Required 3B > Exercise 13-9 Part 3 (3-6) Times interest earned. (3-b) Based on times interest eamed, 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 Based on times interest earned, is the company more or less risky for creditors in the current Year versus 1 Year Ago? Times interest warned
