At December 31 Assets Current Year 1 Year Ago 2 Years Ago Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable $ 25,570 74,845 $ 29,594 52,824 $ 31,148 91,335 69,119 7,846 210,536 $ 369,919 7,990 229,366 $ 429,106 $ 108,984 $ 61,266 Long-term notes payable 83,092 84,231 Common stock, $10 par value 162,500 162,500 Retained earnings 74,530 61,922 Total liabilities and equity $ 429,106 $369,919 For both the current year and one year ago, compute the following ratios: 41,530 46,030 3,426 195,666 $ 317,800. $ 41,530 72,341 163,500 40,429 $ 317,800 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 $ 557,838 $ 340,281 172,930 9,483 7,252 1 Year Ago $ 440,204 529,946 $ 27,892 $ 286,133 111,372 10,125 6,603 414,233 $ 25,971 $ 1.60 $ 1.72 (1) Debt and equity ratios. (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? (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? Required 1 Required 2A Required 2B Required 3A Required 3B Compute debt and equity ratio for the current year and one year ago. Current Year: 1 Year Ago: Current Year: 1 Year Ago: Debt Ratio Numerator: Denominator: Debt Ratio Debt ratio % Equity Ratio Numerator: Denominator: Equity Ratio Equity ratio: % Required 1 Required 2A Required 2B Required 3A Required 3B Compute debt-to-equity ratio for the current year and one year ago. Debt-To-Equity Ratio Current Year: 1 Year Ago: Numerator: 1 J Denominator: = Debt-To-Equity Ratio = Debt-to-equity ratio = to 1 to 1 < Required 1 Required 2B > Required 1 Required 2A Required 28 Required 3A Required 38 Compute times interest earned for the current year and one year ago. Current Year: 1 Year Ago: Numerator: Times Interest Earned Denominator: 1 Times Interest Earned = Times interest earned = 0 times = 0 times