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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

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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, not 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 $ 34, 338 100,516 125, 129 10,947 311,065 $581,995 $ 40,138 $ 41,392 68,134 56,293 90,962 61,151 10,220 4,645 292,266 254,619 $ 501,720 $ 418,100 $143, 468 $ 84,791 $ 54,637 110,509 162,500 165,518 $581,995 116,550 90,552 162,500 162,500 137,879 110,411 $ 501,720 $ 418,100 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 $756,594 $461,522 234,544 12,862 9,836 718,764 $ 37,830 $ 2.33 1 Yr Ago $ 597,047 $388,081 151,053 13,732 8,956 561,822 $ 35,225 $ 2.17 For both the Current Year and 1 Year Ago, compute the following ratios: >401, 22 234,544 12,862 9,836 568,081 151,053 13,732 8,956 LOST or goods sola Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Earnings per share 718, 764 $ 37,830 $ 2.33 561,822 $ 35,225 $ 2.17 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 1 Choose Denominator: Choose Numerator: Debt Ratio Debt ratio 1 11 HI % Current Year: 1 Year Ago: 11 % Equity Ratio oose Denominator: Choose Numerator: = Equity Ratio Equity ratio Current Year: 1 % 1 Year Ago: = % w 234,544 12,862 9,836 151,053 13, 732 8,956 Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Earnings per share 718,764 $ 37,830 561,822 $ 35, 225 $ 2.17 $ 2.33 For both the Current Year and 1 Year Ago, compute the following ratios: 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 0 to 1 0 to 1 Current Year: / = = 1 Year Ago

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