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2 Years Ago 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 Cash $ 26,074 $ 29,582 Accounts receivable, net 74,089 53,337 Merchandise inventory 95,016 70,481 Prepaid expenses 7,985 7,687 Plant assets, net 230,104 212,420 Total assets $ 4/3,268 $ 373,507 Liabilities and Equity Accounts payable $ 110,041 $ 61,860 Long-term notes payable 82,269 87,625 Common stock, $10 par value 163,500 162,500 Retained earnings 77,458 61,522 Total liabilities and equity $ 433,268 $ 373,507 $ 31,126 40,671 43,305 3,389 195,909 $ 314,400 $ 41, 501 67,398 163,500 42,001 $ 314,400 For both the current year and one year ago, compute the following ratios: The company's income statements for the current year and one year ago, follow. For Year Ended December 31 Current Year 1 Year Ago Sales $ 563,248 $444,473 Cost of goods sold $ 343, 581 $ 288,907 Other operating expenses 174,607 112,452 Interest expense 9,575 10,223 Income tax expense 7,322 6,667 Total costs and expenses 535,085 418, 249 Net income $ 28,163 $ 26,224 Earnings per share $ 1.73 $ 1.61 (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-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 1 Required 2A Required 28 Required 3A Required 38 Required 1 Required 2A Required 2B Required 3A Required 3B Compute debt and equity ratio for the current year and one year ago. Debt Ratio Numerator: Denominator: 1 Debt Ratio Debt ratio 0 % 0 % Current Year: 1 Year Ago: # Equity Ratio Numerator: Denominator: 1 Current Year: Equity Ratio Equity ratio 0 % 0 % 1 1 Year Ago: 1 11 Required Required 2A > Required 1 Required 2A Required 2B Required 3A Required 3B Compute debt-to-equity ratio for the current year and one year ago. Debt-To-Equity Ratio 1 Denominator: Numerator: II Current Year: 1 Year Ago: = Debt-To-Equity Ratio Debt-to-equity ratio 0 to 1 0 to 1 = Required 1 Required 2A Required 28 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 1 Required 2A Required 28 Required 3A Required 3B Compute times interest earned for the current year and one year ago. Times Interest Earned Numerator: 1 Denominator: Current Year: 1 Year Ago: Times Interest Earned Times interest oamed times O times / 1 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