Refer to the Simon Company information in Exercises 17 7 and 17 9. Compare the company's long term risk and capital structure positions at the end of 2014 and 2013 by computing these ratios: In Exercise 17 7, Simon Company's year end balance sheets follow. Express the balance sheets in common size percents. Round amounts to the nearest one tenth of a percent.
-1.png)
In Exercise 17 9, The company's income statements for the years ended December 31, 2014 and 2013 follow. Assume that all sales are on credit and then compute:
-2.png)
(1) Debt and equity ratiospercent rounded to one decimal,
(2) Debt to equity ratiorounded to two decimals,
(3) Times interest earnedrounded to one decimal. Comment on these ratioresults.