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Exercise 15-9 Analyzing risk ana capital structure LUP3 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 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 $ 34,145 99,973 124,428 11,108 320,890 $590,544 $ 40,727 $ 42,429 71,273 58,857 92,298 62,701 10,370 4,619 294,422 264, 294 $ 509,099 $ 432,900 $151,457 $ 88,617 $ 56,571 113,243 162,500 163,344 $590,544 117,091 96,628 162,500 162,500 140,882 117,201 $ 509,090 $ 432,900 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 $767,787 $468, 301 237,989 13,051 9,980 729,321 $ 38,386 $ 2.36 1 yr Ago $ 605,817 $393,781 153,272 13,934 9,087 570,074 $ 35, 743 220 Exercise 13-9 Part 1 (1) Debt and equity ratios. Debit Ratio Choose Numerator Choose Denominator: Debt Ratio Debt ratio Current Year: 1111 1 Year Ago: % % - Equity Ratio Choose Numerator: Choose Denominator: Equity Ratio Equity ratio Current Year: 11 1 Year Ago: %6

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