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 Current Year 1 Year Ago 2 Years Ago $ 31,800 89,500 $ 35,625 $ 37,800 62,500 50,200 112,500 82,500 54,000 10,700 278,500 $ 523,000 $ 445,000 9,375 255,000 5,000 230,500 $ 377,500 $ 129,900 $ 75,250 $ 51,250 98,500 101,500 163,500 163,500 83,500 163,500 131,100 104,750 79,250 Common stock, $10 par value Retained earnings Total liabilities and equity $ 523,000 $ 445,000 $ 377,500 The company's income statements for the current year and one 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 Year $ 673,500 $ 411,225 209,550 12,100 9,525 642,400 $ 31,100 $ 1.90 1 Year Ago $ 532,000 $ 345,500 134,980 13,300 8,845 502,625 $ 29,375 $ 1.80 (1) Compute debt and equity ratio for the current year and one year ago. Debt Ratio Numerator: Denominator: Total liabilities Total assets Current Year: 1 Year Ago: Current Year: 1 Year Ago: Equity Ratio Numerator: Denominator: 1 Total assets Total equity 1 " Assessme Debt Ratio Debt ratio 0% 0% Equity Ratio Equity ratio 0 % 0% (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? Complete this question by entering your answers in the tabs below. Required 2A Required 28 Compute debt-to-equity ratio for the current year and one year ago. Numerator: Total liabilities Current Year: 1 Year Ago: Debt-To-Equity Ratio Denominator: Total equity 1 Debt-To-Equity Ratio Debt-to-equity ratio 0 to 1 0 to 1 (3-a) Compute times interest earned for the current year and one year ago. (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 Compute times Interest eamed for the current year and one year ago. Current Year: 1 Year Ago: Numerator: Times Interest Earned Denominator: Times Interest Earned Times interest eamed 0 times 0 times