Refer to the Sanderson Company information in Exercises 17-7 and 17-9. Compare the company€™s longterm risk and capital structure positions at the end of 2012 and 2011 by computing these ratios:
(1) Debt and equity ratios,
(2) Debt-to-equity ratio, and
(3) Times interest earned. Comment on these ratioresults.

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For Year Ended December 31 2012 2011 Sales Cost of goods sold Other operating expenses Interest expense Income taxes Total costs and expenses Net income Earnings per share $672,500 $530,000 $410,225 208,550 11,100 8,525 $344,500 33,980 2,300 7,845 638,400 $ 34,100 $ 2.10 498,625 $ 31,375 $ 1.93