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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 Assets Current Year 1 Year Ago 2 Years Ago Cash Accounts receivable, net Merchandise inventory Prepaid expenses Total assets $ 28,257 81,898 104,022 9,564 264,968 $ 488,709 Plant assets, net Liabilities and Equity Accounts payable $ 119,255 Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity 93,715 162,500 113,239 $ 34,041 60,162 76,382 8,759 241,957 $ 421,301 $ 71,912 97,868 162,500 89,021 $ 488,709 $ 421,301 For both the current year and one year ago, compute the following ratios: $ 34,417 45,434 47,899 3,900 212,550 $ 344,200 $ 44,980 74,547 162,500 62,173 $ 344,200 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 Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Earnings per share Current Year 1 Year Ago $ 501,348 $ 635,322 $ 387,546 196,950 10,800 8,259 $ 325,876 126,841 11,531 7,520 603,555 $31,767 $ 1.95 471,768 $29,580 $ 1.82 ces (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? Compute debt and equity ratio for the current year and She year ago. Current Year: 1 Year Ago: Current Year: 1 Year Ago: Debt Ratio Numerator: Denominator: Debt Ratio Debt ratio % Equity Ratio Numerator: Denominator: Equity Ratio Equity ratio % % Required 2A > Compute times Interest earned for the current year and one year ago. Current Year: 1 Year Ago: Numerator Times Interest Earned Denominator: Times Interest Earned Times interest earned 0 times 0 times

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