Exercise 13-9 Risk and capital structure analysis LO P3 [The following information applies to the questions displayed below.] Simon Companys year-end balance sheets follow. At December 31 2017 2016 2015 Assets Cash $ 28,525 $ 34,003 $ 35,086 Accounts receivable, net 83,492 58,350 47,708 Merchandise inventory 101,888 78,632 51,323 Prepaid expenses 8,913 8,579 3,898 Plant assets, net 255,865 233,094 212,885 Total assets $ 478,683 $ 412,658 $ 350,900 Liabilities and Equity Accounts payable $ 118,000 $ 69,042 $ 46,319 Long-term notes payable secured by mortgages on plant assets 89,092 94,911 79,100 Common stock, $10 par value 162,500 162,500 162,500 Retained earnings 109,091 86,205 62,981 Total liabilities and equity $ 478,683 $ 412,658 $ 350,900 The companys income statements for the years ended December 31, 2017 and 2016, follow. For Year Ended December 31 2017 2016 Sales $ 622,288 $ 491,063 Cost of goods sold $ 379,596 $ 319,191 Other operating expenses 192,909 124,239 Interest expense 10,579 11,294 Income taxes 8,090 7,366 Total costs and expenses 591,174 462,090 Net income $ 31,114 $ 28,973 Earnings per share $ 1.91 $ 1.78 Calculate the companys long-term risk and capital structure positions at the end of 2017 and 2016 by computing the following ratios. Exercise 13-9 Part 3 (3) Times interest earned.