work Required Information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below] Simon Company's year-end balance sheets follow. At December 31 Current Year 1 Year Ago 2 Years Ago Assets Cash $ 38,097 $ 40,486 $ 31,933 95,415 117,567 Accounts receivable, net 67,343 $3,981 Merchandise inventory. 91,659 57,496 9,899 Prepaid expenses Plant assets, net 10,708 302,361 274,023 4,454 248,483 $ 484,900 Total assets $ 557,984 $ 481,021 Liabilities and Equity Accounts payable $ 81,293 $ 53,447 Long-tere notes payable. 110,635 19,483 $ 136,199 106,999 162,500 152,326 Common stock, $10 par value 163,500 162,500 Retained earnings 125,593 99,470 Total liabilities and equity. $ 557,984 $ 481,021 $ 404,900 For both the current year and one year ago, compute the following ratios: Exercise 13-7 (Algo) Analyzing liquidity LO P3 (1-0) Compute the current ratio for each of the three years. (1-b) Did the current ratio improve or worsen over the three-year peri (2-a) Compute the acid-test ratio for each of the three years. (2-b) Did the acid-test ratio improve or worsen over the three-year period? Complete this question by entering your answers in the tabs below. Required 1A Required 18 Required 2A Required 28 Compute the current ratio for each of the three years. Current Ratio Numerator Current Year: 1 Year Ago 2 Years Ago 1 Denominator: Current Ratio Cument ratio 0 to 1 0101 0/101 = M - Required 18 > Required Information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below] Simon Company's year-end balance sheets follow. At December 31 Current Year 1 Year Ago Assets $ 38,097 Cash 67,343 Accounts receivable, net Merchandise inventory $ 31,933 95,415 117,567 18,798 302,361 91,659 9,899 Prepaid expenses Plant assets, net 274,023 $ 481,021 $ 557,984 Total assets Liabilities and Equity Accounts payable $ 81,293 118,635 Long-term notes payable Common stock, $10 par value $ 136,159 106,999 162,500 152,326 163,500 Retained earnings 125,593 Total liabilities and equity $ 557,984 $ 481,821 For both the current year and one year ago, compute the following ratios: Exercise 13-9 (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 Current Year 1 Year Ago $ 725,379 $ 572,415 Cost of goods sold Other operating expenses $ 442,481 224,867 $ 372,870 144,821 Interest expense Income tax expense 12,331 9,430 13,166 8,586 Total costs and expenses 689,109 $36,270 538,643 $ 33,772 Net income Earnings per share $ 2.23 $2.08 (1) Debt and equity ratios. (2-a) Compute debt-to-equity ratio for the current year and one year ago. (2-b) Based on debt-to-equity ratio, does the company have more or less debt in the current year versus one year ago? (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 Ago? Complete this question by entering your answers in the tabs below. 2 Years Ago $ 40,486 53,981 57,496 4,454 248,483 $ 404,900 $ 53,447 89,483 162, see 99,478 $ 404,900 152,5 Common stock, 510 par value ined earnings Total liabilities and equity 152326 5 557,94 1252593 53,23 S. For both the current year and one year ago. compute the following ratios os Exercise 13-9 (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 Current Year 1 Years Sales $ 725, 379 5572,415 Cost of goods sold 3462,481 $ 372,07 Other operating expenses 224,867 144,823 Interest expense 12,331 13,156 Income tax expense 8,585 Total costs and expenses 589, 109 533.643 het incon $_35,27e $ 33,772 Earnings per share 5.2.23 $ 2.00 DOR nnt rences (1) Debt and equity ratios (2-a) Compute debt-to-equity ratio for the current year and one year ago (2-6) Based on debt-to-equity ratio, does the company have more or less debt in the current year versus one year ago? (3-a) Times interest earned (3-6) 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: Required 2A Required 28 Required 2A Required 38 Compute debt and equity ratio for the current year and one year ago Debt Ratio Numerator: Denominator Debt Ratio Debratio Current Year = 1 Year Age 05 0 % Equity Ratio Numerator Denominator Current Year 1 Year Ago: = Equity Ratio Equity ratio os 0