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11 10 Required information [The following information applies to the questions displayed below. Part 1 of 3 Simon Company's year-end balance sheets follow 88 oints At December 31 2017 2016 2015 Assets Cash $ 31,800 $ 35,625 $ 37,800 89,500 112,500 10,700 278,500 Accounts receivable, net Merchandise inventory 62,500 50,200 54,000 eBook 82,500 9,375 255,000 $523,000 $445,000 $377,500 Prepaid expenses Plant aSsets, net 5,000 230,500 Hint Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings $129,900 $ 75,250 $ 51,250 Print References 98,500 163,500 131,100 101,500 163,500 104,750 83,500 163,500 79,250 7otal liabilities and $523,000 $445,000 $377,500 equity The company's income statements for the years ended December 31, 2017 and 2016, follow 11 For Year Ended 2017 2016 December 31 Sales Cost of goods sold $411,225 Other operating $673,500 $532,000 Part 1 of 3 $345,500 209,550 134,980 expenses Interest expense 12,100 13,300 5.88 Income taxes 9,525 polnts 8,845 Total costs and 642,400 502,625 expenses Net income $ 29,375 $31,100 eBook Earnings per share 1.90 1.80 Hint Calculate the company's long-term risk and capital structure positions at the end of 2017 and 2016 by computing the following ratios. Print eBook (1) Debt and equity ratios. Hint Debt Ratio Choose Numerator Choose Denominator: Debt Ratio Debt ratio Print 2017: % 2016: % References Equity Ratio Choose Numerator Choose Denominator Equity Ratio Equity ratio 2017: % 2016: % (2) Debt-to-equity ratio. eBook Debt-To-Equity Ratio Hint Choose Numerator: Choose Denominator: Debt-To-Equity Ratio Debt-to-equity ratio to 1 Print 2017: 2016: to 1 (3) Times interest earned. eBook Times Interest Earned Hnt Choose Numerator: Choose Denominator Times Interest Earned Times interest earned Print 2017: times 2016: times References