(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 Part 1 of 3 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 $ 31,085 94,692 115,589 10,011 286, 247 $537,624 $ 37,448 $ 37,100 66,832 50,982 84,027 53,758 9,830 4,333 265,332 236, 227 $ 463,469 $ 382,400 $137,884 $ 78,326 $ 51,486 102,084 162,500 135, 156 $537,624 106,598 83,665 162,500 162,500 116,045 84,749 $ 463,469 $ 382,400 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 $ 698,911 $426,336 216,662 11,881 9,086 663,965 $ 34,946 1 Yr Ago $551,528 $ 358,493 139,537 12,685 8,273 518,988 $ 32,540 Earnings per share $ 2.15 $ 2.00 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 Debt ratio Current Year: 1 Year Ago: Debt Ratio Choose Numerator: 1 Choose Denominator: = Total liabilities / Total assets 1 $ 537,624 1 $ 463,469 Equity Ratio Choose Numerator: 1 Choose Denominator: = Total equity 1 Total assets = is 1 $ 537,624 = 1 | $ 463,469 Equity Ratio Equity ratio Current Year: 1 Year Ago: Exercise 13-9 Analyzing risk and capital structure LO P3 The following information applies to the questions displayed below.) Part 2 of 3 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 $ 31,085 94, 692 115,589 10,011 286, 247 $537,624 $ 37,448 $ 37,100 66,832 50,982 84.027 53,758 9,830 4,333 265, 332 236, 227 $ 463,469 $ 382,400 $137,884 $ 78,326 $ 51,486 102,084 162,500 135, 156 $537,624 106,598 83,665 162,500 162,500 116,045 84,749 $ 463,469 $ 382,400 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 Earnings per share Current Yr $698, 911 $426,336 216,662 11,881 9,086 663,965 $ 34,946 Yr Ago $551, 528 $ 358, 493 139,537 12,685 8,273 518,988 $ 32.540 $ 2.15 $ 2.00 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: 1 Choose Denominator: = Debt-To-Equity Ratio Debt-to-equity ratio 0 to 1 0 to 1 Current Year: 1 Year Ago: Simon Company's year-end balance sheets follow. Current Yol Yr Ago 2 Yrs Ago Part 3 of 3 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 $ 31,085 94,692 115,589 10,011 286, 247 $537, 624 $ 37,448 $ 37,100 66,832 50,982 84,027 53,758 9,830 4,333 265,332 236,227 $ 463,469 $ 382,400 $137,884 $ 78,326 $ 51,486 102,084 162.500 135, 156 $537,624 106,598 83,665 162.500 162.500 116,045 84,749 $ 463,469 $ 382,400 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 $ 698.911 $426,336 216.662 11,881 9.086 663,965 $ 34,946 1 Yr Ago $551, 528 $ 358,493 139.537 12,685 8,273 518,988 $ 32,540 Earnings per share $ 2.15 $ 2.00 For both the Current Year and 1 Year Ago, compute the following ratios: Exercise 13-9 Part 3 (3-a) 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 Ago? Complete this question by entering your answers in the tabs below. Required 3A Required 3B Times interest earned. Times Interest Earned Choose Numerator: 1 Choose Denominator: Times Interest Earned Times Interest earned Current Year: times 1 Year Ago: times Simon Company's year-end balance sheets follow. Current yr 1 Yr Ago 2 Yrs Ago Part 3 of 3 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 $ 31,085 94,692 115,589 10,011 286,247 $537,624 $ 37,448 $ 37,100 66,832 50,982 84,027 53,758 9,830 4,333 265,332 236,227 $ 463,469 $ 382,400 $137,884 $ 78,326 $ 51,486 102,084 162,500 135, 156 $537,624 106,598 83,665 162,500 162,500 116,045 84,749 $ 463,469 $ 382,400 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 Earnings per share Current Yr $ 698,911 $426,336 216,662 11,881 9,086 663,965 $ 34,946 $ 2.15 1 Yr Ago $551,528 $ 358, 493 139,537 12,685 8,273 518,988 $ 32,540 $ 2.00 For both the Current Year and 1 Year Ago, compute the following ratios: Exercise 13-9 Part 3 (3-a) 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 Ago? Complete this question by entering your answers in the tabs below. 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? Times interest earned