!Required information[The following information applies to the questions displayed below.]Simon Company's year-end balance sheets follow.At December 31AssetsCashAccounts receivable, netMerchandise inventoryPrepaid expensesPlant assets, netTotal assetsLiabilities and EquityAccounts payableLong-term notes payableCommon stock, $10 par valueRetained earningsTotal liabilities and equityInterest expenseIncome tax expenseTotal costs and expensesNet incomeEarnings per shareFor both the current year and one year ago, compute the following ratios:The company's income statements for the current year and one year ago, follow.For Year Ended December 31SalesCost of goods soldOther operating expensesCurrent Year:1 Year Ago:Current Year 1 Year Ago$ 27,98881,119106,1559,197259,602$ 484,061Current Year:1 Year Ago:$ 383,860195,076Numerator:$ 118, 12188,273162,500115,167$ 484,061Current YearTotal liabilities10,6988,181Numerator:Total equityRequired 1 Required 2A Required 2B Required 3A Required 3BComplete this question by entering your answers in the tabs below.$ 629,279Compute debt and equity ratio for the current year and one year ago.597,815$ 31,464$ 1.94$ 32,38259,00578,7438,676238,488$ 417,294(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?$ 71,22897,897162,50085,669$ 417,294(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?Equity Ratio111Debt Ratio1/ Total assets11Debt RatioDebt ratio0 %0 %Equity RatioEquity ratio00 %%

Debt-equity ratios help the stakeholders in analyzing the financing split of the company. It helps…

! Required information [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. 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 Common stock, $10 par value ained earnings Total liabilities and equity Interest expense Income tax expense Total costs and expenses Net income Earnings per share 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. 1 Year Ago For Year Ended December 31 Sales Cost of goods sold Other operating expenses Current Year 1 Year Ago $ 27,988 81,119 106,155 9,197 259,602 $ 484,061 Current Year: 1 Year Ago: Current Year: 1 Year Ago: $ 118, 121 88,273 162,500 115,167 $ 484,061 Numerator: Current Year $ 383,860 195,076 10,698 8,181 Total liabilities Numerator: Total equity Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Required 3A Required 3B. $ 629,279 (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? Compute debt and equity ratio for the current year and one year ago. 597,815 $ 31,464 $ 1.94 (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? $ 32,382 59,005 78,743 8,676 238,488 $ 417,294 Equity Ratio 1 1 1 Debt Ratio 1 / Total assets 1 $ 47,795 $ 71,228 97,897 162,500 85,669 79,229 162,500 68,976 $ 417,294 $ 358,500 $ 322,777 125,635 11,421 7,449) < Required 1 /Total assets 2 Years Ago $ 35,492 47,795 50,907 3,865 220,441 $ 358,500 Denominator: Denominator: = = Debt Ratio Debt ratio = = $ 496,580 = 467,282 $ 29,298 $ 1.80 M Required 2A > 0 % 0 % Equity Ratio Equity ratio 0 % 0 %