[The following information applies to the questions displayed below.] 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 $ 35, 138 98,815 125,509 11, 316 318,881 $589,659 $ 41,479 71,877 95,921 10,995 288,055 $ 508,327 $ 41,526 53,175 58, 973 4,568 257,058 $ 415,300 $ 143,889 109, 747 162,500 173,523 $ 589,659 $ 85,907 118,084 162,500 141,836 $ 508,327 $ 55,916 90,863 162,500 106,021 $ 415, 300 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 Current Year $ 766,557 $ 467,600 237,633 13,031 9,965 728, 229 $ 38, 328 1 Year Ago $ 604,909 $ 393,191 153,042 13,913 9,074 569,220 $ 35,689 Earnings per share $ 2.36 $ 2.20 For both the current year and one year ago, compute the following ratios. omework Saved Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income $ 467,600 237,633 13,031 9,965 $ 393, 191 153,042 13,913 9,074 728, 229 $ 38,328 569,220 $ 35,689 Earnings per share $ 2.36 $ 2.20 For both the current year and one year ago, compute the following ratios: (1) Compute debt and equity ratio for the current year and one year ago. Debt Ratio Numerator: Denominator: Debt Ratio Debt ratio Current Year: % 1 Year Ago: 10 % Equity Ratio Numerator: Denominator: Equity Ratio Equity ratio TANIT Current Year: % 1 Year Ago: 96 7 Homework Saved Other operating expenses Interest expense Income tax expense Total costs and expenses Net income 237,633 13,031 9,965 153,042 13,913 9,074 728, 229 $ 38, 328 569,229 $ 35,689 Earnings per share $ 2.36 $ 2.20 For both the current year and one year ago, compute the following ratios: (2) Compute debt-to-equity ratio for the current year and one year ago. Debt-To-Equity Ratio Denominator: Numerator: 1 Debt-To-Equity Ratio Debt-to-equity ratio Current Year: 1 Year Ago: - to 1 to 1 Other operating expenses Interest expense Income tax expense Total costs and expenses Net income 237,633 13,031 9,965 153,42 13,913 9,074 728, 229 $ 38,328 569,220 $ 35,689 $ 2.20 Earnings per share $ 2.36 For both the current year and one year ago, compute the following ratios: (3-2) Compute times interest earned for the current year and one year ago (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 34 Required 38 Compute times interest eamed for the current year and one year ago. Times Interest Eamed Numerator: Denominator: Times Interest Earned Times interest earned smes Current Year: 1 5 Year Ago: 1 times Required 3B >