(1) Debt and equity ratios.

(2) Debt-to-equity ratio.

(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?

Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ago 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 secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 32,347 97,578 121,483 10,629 297, 405 $559, 442 $ 38,582 $ 40,600 67,519 55, 216 90,114 59,399 9,824 4,601 276,239 250, 284 $ 482,278 $ 410,100 $ 136,515 $ 83,135 $ 53,592 104, 123 162,500 156,304 $559,442 108,705 89,726 162,500 162,500 127,938 104,282 $ 482,278 $ 410,100 The company's income statements for the Current Year and 1 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 Current Yr $ 727,275 $ 443,638 225,455 12,364 9,455 690,912 $ 36,363 1 Yr Ago $ 573, 911 $ 373,042 145,199 13,200 8,609 540,050 $ 33,861 Earnings per share $ 2.24 $ 2.08 For both the Current Year and 1 Year Ago, compute the following ratios: Debt and equity ratios