Company's year-end balance sheets follow. 2017 2016 2015 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, S10 par value Retained earnings Total liabilities and equity $ 31,800 $ 35,625 $ 37, 800 89,500 62,500 50,200 112,500 82,500 54,000 10,700 9,375 5,000 278,500 255,000 230,500 $523,000 $445,000 $377,500 $129,900 $ 75,250 $ 51, 250 98,500 101,500 83,500 163,500 163,500 163,500 131, 100 104.750 79,250 $523,000 $445,000 $377,500 The company's income statements for the years ended December 31, 2017 and 2016, follow. For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income taxes Total costs and expenses Net income Earnings per share 2017 $673,500 $411,225 209,550 12,100 9,525 642,400 S 31, 100 $ 1.90 2016 $ 532,000 $345,500 134,980 13,300 8,845 502,625 $ 29,375 S 1.80 Calculate the company's long-term risk and capital structure positions at the end of 2017 and 2016 by computing the following ratios. Exercise 13-9 Part 1 (1) Debt and equity ratios. Debt Ratio Choose Denominator: Debt Ratio Debt ratio Choose Numerator: % 2017: 2016: Equity Ratio Choose Denominator: Equity Ratio Equity ratio % Choose Numerator: % 2017: 2016