Simon Company's year-end Dalance sheets onOW. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities artd Equity Accounts payable Common stock, $10 par value Long term notes payable Retained earnings Total liabilities and equity Current Year 1 Year Ago 2 Years Ago $ 28, 175 $ 32,282 58,776 $ 34, 313 82, 469 101, 656 9,073 251, 445 $472,818 $ 120,086 88,890 163, 500 100, 342 $472,818 77,669 8,731 230, 144 $ 407,602 $ 68,885 94, 686. 163,500 80, 531 $ 407,602 For both the current year and one year ago, compute the following ratios: 44, 836 49, 217 3,736 214,498 $ 346, 600 $ 45, 751 75, 833 162,500 62, 516 $ 346,600 Exercise 17-9 (Algo) Analyzing risk and capital structure LO P3 The company's income statements for the current year and one 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 Year $ 614,663 $ 374,944 1 Year Ago $ 485, 046 190, 546 10,449 7,991 583, 930 $ 30, 733 $ 315, 280 122,717 11, 156 7,276 456, 429 $ 28,617 $ 1.89 $ 1.76 Required 1 Required 2A Required 2B Required 3A Required 3B Compute debt and equity ratio for the current year and one year ago. Current Year: 1 Year Ago: Current Year: 1 Year Ago: Debt Ratio Numerator: Denominator: Debt Ratio Debt ratio = % % Equity Ratio Numerator: Denominator: Equity Ratio Equity ratio % % Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Required 3A Required 3B Compute debt-to-equity ratio for the current year and one year ago. Current Year: 1 Year Ago: Numerator: Debt-To-Equity Ratio Denominator: =Debt-To-Equity Ratio = Debt-to-equity ratio to 1 7 to 1 < Required 1 Required 2B > Required 1 Required 2A Required 2B Required 3A Required 3B. Based on debt-to-equity ratio, does the company have more or less debt in the current year versus one year ago? Based on debt-to-equity ratio, the company has debt in the current year versus one year ago. < Required 2A Required 3A > Required 1 Required 2A Required 28 Required 3A Required 38 Compute times interest earned for the current year and one year ago. Current Year: 1 Year Ago: Numerator: Times Interest Earned Denominator: Times Interest Earned Times interest earned 1 < Required 28 Required 3B > times times: Required 1 Required 2A Required 2B Required 3A Required 3B Based on times interest earned, is the company more or less risky for creditors in the Current Year versus 1 Year Ago? Based on times interest earned, the company is for creditors in the current year versus one year ago. < Required 3A Required 38 > (1-a) Profit margin ratio. (1-b) Did profit margin improve or worsen in the Current Year versus 1 Year Ago? (2) Total asset turnover. (3-a) Return on total assets. (3-b) Based on return on total assets, did Simon's operating efficiency 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 Required 2 Required 3A Required 38 Compute profit margin ratio for the current year and one year ago. Current Year: 1 Year Ago: Numerator: Profit Margin Ratio Denominator: Profit Margin Ratio Profit margin ratio % Required information (1-a) Profit margin ratio. (1-b) Did profit margin improve or worsen in the Current Year versus 1 Year Ago? (2) Total asset turnover. (3-a) Return on total assets. (3-b) Based on return on total assets, did Simon's operating efficiency 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 18 Required 2 Required 3A Required 38 Did profit margin improve or worsen in the Current Year versus 1 Year Ago? Profit margin < Required 1A Required 2 > (1-a) Profit margin ratio. (1-b) Did profit margin improve or worsen in the Current Year versus 1 Year Ago? (2) Total asset turnover. (3-a) Return on total assets. (3-b) Based on return on total assets, did Simon's operating efficiency 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 18 Required 2 Required 3A Required 38 Compute total asset turnover for the current year and one year ago. Current Year: 1 Year Ago: Total Asset Turnover Numerator: Denominator: Total Asset Turnover Total asset turnover times times (1-a) Profit margin ratio. (1-b) Did profit margin improve or worsen in the Current Year versus 1 Year Ago? (2) Total asset turnover. (3-0) Return on total assets. (3-b) Based on return on total assets, did Simon's operating efficiency 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 Required 2 Required A Required 38 Compute return on total assets for the current year and one year ago. Current Year: 1 Year Ago: Numerator: Return On Total Assets Denominator: Return On Total Assets - Return on total assets. < Required 2 Required 38 > % (1-a) Profit margin ratio. (1-b) Did profit margin improve or worsen in the Current Year verss 1 Year Ago? (2) Total asset turnover. (3-a) Return on total assets. (3-b) Based on return on total assets, did Simon's operating efficiency improve or worsen in the Current Year versus 1 Year F Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2 Required 3A Required 38 Based on return on total assets, did Simon's operating efficiency improve or worsen in the Current Year versus 1 Year Ago? Return on total assets For both the current year and one year ago, compute the following ratios: 1. Return on equity. 2. Dividend yield. 3a. Price-earnings ratio on December 31. 3b. Assuming Simon's competitor has a price-earnings ratio of 7, which company has higher market expectations for future growth? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3A Required 38 1 Compute the return on equity for each year. Current Year: 1 Year Ago: Numerator: Preferred dividends Return On Equity Denominator: Return On Equity " Return on equity Request 1. Required 2 For both the current year and one year ago, compute the following ratios: 1. Return on equity. 2. Dividend yield. 3a. Price-earnings ratio on December 31. 3b. Assuming Simon's competitor has a price-earnings ratio of 7, which company has higher market expectations for future growth? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3A Required 38 Compute the dividend yield for each year. Note: Round your answers to 2 decimal places. Current Year: 1 Year Ago: Numerator: Dividend Yield Denominator: Dividend Yield Dividend yield % % . Dividend yield. a. Price-earnings ratio on December 31. b. Assuming Simon's competitor has a price-earnings ratio of 7, which company has higher market expectations fo Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3A Required 3B Compute the price-earnings ratio for each year. Note: Round your answers to 2 decimal places. Current Year: 1 Year Ago: Numerate Price-Earnings Ratio Denominator: Price-Earnings Ratio Price-earnings ratio < Required 2 Required 3B > 1. Return on equity. 2. Dividend yield. 3a. Price-earnings ratio on December 31. 3b. Assuming Simon's competitor has a price-earnings ratio of 7, which company has higher market expectations for future gr Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3A Required 38 Assuming Simon's competitor has a price-earnings ratio of 7, which company has higher market expectations for future growth? Which company has higher market expectations for future growth