(2) Debt-to-equity ratio. Debt-To-Equity Ratio Choose Numerator: T Choose Denominator: - | = Debt-To-Equity Ratio Debt-to-equity ratio to 1 Current Year: 1 Year Ago: to 1 (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? Complete this question by entering your answers in the tabs below. Required 3A Required 38 Times interest earned. Times Interest Earned 1 Choose Denominator: Choose Numerator: Times Interest Earned Times interest earned times times i Current Year: 1 Year Ago: (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? Complete this question by entering your answers in the tabs below. Required 3A Required 3B Based on times interest earned, is the company more or less risky for creditors in the Current Year versus 1 Year Ago? Times interest earned Required information [The following information applies to the questions displayed below.) 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 $ 26,982 79,009 101,366 8,689 255,424 $ 471,470 $ 31,865 $ 32,861 56,902 43,814 73,688 49,057 8,365 3,726 235,620 209,242 $ 406,440 $ 338,700 $113,874 $ 67,315 $ 46,050 87,750 162,500 107,346 $471, 470 93,481 74,853 162,500 162,500 83,144 55,297 $ 406,440 $ 338,700 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 Earnings per share Current Yr $ 612,911 $ 373,876 190,002 10,419 7,968 582,265 $ 30,646 $ 1.89 1 Yr Ago $ 483,664 $314,382 122,367 11,124 7,255 455, 128 $ 28,536 $ 1.76 For both the Current Year and 1 Year Ago, compute the following ratios: (1) Debt and equity ratios. (1) Debt and equity ratios. Debt Ratio 1 Choose Numerator: Choose Denominator: = Debt Ratio Debt ratio Current Year: 1 Year Ago: Equity Ratio Choose Numerator: Choose Denominator: = Equity Ratio Equity ratio Current Year: 1 Year Ago