Required information [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 $ 31,800 $ 35,625 $ 37,800 89,500 62,500 50,200 112,500 82,500 54,000 10,700 9,375 5,000 278,500 255,000 230,500 $523,000 $445,000 $ 377,500 $129,900 $ 75,250 $ 51,250 98,500 101,500 83,500 163,500 163,500 163,500 131, 100 104,750 79,250 $523,000 $445,000 $ 377,500 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 $673,500 $411, 225 209,550 12,100 9,525 642,400 $ 31,100 $ 1.90 1 Yr Ago $ 532,000 $345,500 134,980 13,300 8,845 502,625 $ 29,375 $ 1.80 For both the Current Year and 1 Year Ago, compute the following ratios: 1) Debt and equity ratios. Debt Ratio Choose Numerator: Accounts receivable, net = Answer is complete but not entirely correct. Debt Ratio 1 Choose Denominator: > / Net sales 89,500 1 $ 673,500 62,500 1 $ 532,000 Equity Ratio 1 Choose Denominator: Debt ratio 13.3 $ = % Current Year: 1 Year Ago: $ 11 11.7 % Choose Numerator: Equity Ratio Equity ratio Net sales / Accounts receivable, net = $ 31,100 1 $ 11 4.6 % Current Year: 1 Year Ago: 673,500 532,000 $ 29,375 $ 11 5.5 % 2) Debt-to-equity ratio Choose Numerator: Debt-To-Equity Ratio 1 Choose Denominator: 1 Debt-To-Equity Ratio Debt-to-equity ratio to 1 to 1 / 11 Current Year: 1 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 3A Required 3B Times interest earned. Choose Numerator: Times Interest Earned 1 Choose Denominator: 1 = 11 Times Interest Earned Times interest earned times = Current Year: 1 Year Ago: 1 11 times