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The following information applies to the questions displayed below.] Simon Companys year-end balance sheets follow....

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Accounting

The following information applies to the questions displayed below.]

Simon Companys year-end balance sheets follow.

At December 31 Current Year 1 Year Ago 2 Years Ago
Assets
Cash $ 25,113 $ 29,355 $ 29,678
Accounts receivable, net 69,217 51,371 41,186
Merchandise inventory 88,821 67,217 42,569
Prepaid expenses 7,929 7,554 3,264
Plant assets, net 226,216 204,241 189,203
Total assets $ 417,296 $ 359,738 $ 305,900
Liabilities and Equity
Accounts payable $ 107,024 $ 59,580 $ 41,186
Long-term notes payable 78,452 84,395 66,928
Common stock, $10 par value 162,500 162,500 162,500
Retained earnings 69,320 53,263 35,286
Total liabilities and equity $ 417,296 $ 359,738 $ 305,900

The companys income statements for the current year and one year ago, follow.

For Year Ended December 31 Current Year 1 Year Ago
Sales $ 542,485 $ 428,088
Cost of goods sold $ 330,916 $ 278,257
Other operating expenses 168,170 108,306
Interest expense 9,222 9,846
Income tax expense 7,052 6,421
Total costs and expenses 515,360 402,830
Net income $ 27,125 $ 25,258
Earnings per share $ 1.67 $ 1.55

(1) Compute debt and equity ratio for the current year and one year ago.

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