Required information [The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ago 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, $10 par value Retained earnings Total liabilities and equity $ 26,722 75,147 94,484 8,605 243,469 $448,427 $ 31,545 $ 32,859 55,744 41,664 72,232 47,131 7,875 3,544 219,179 200,202 $ 386,575 $ 325,400 $109,425 $ 65,331 $ 43,382 85,147 162,500 91,355 $448,427 89,801 162,500 68,943 $ 386,575 70,475 162,500 49,043 $ 325,400 The company's income statements for the Current Year and 1 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 Yr $582,955 $355,603 180,716 9,910 7,578 553,807 $ 29, 148 1 Yr Ago $ 460,024 $299,016 116,386 10,581 6,900 432,883 $ 27,141 $ 1.79 $ 1.67 For both the Current Year and 1 Year Ago, compute the following ratios: (1) Debt and equity ratios. Required information [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ago 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, $10 par value Retained earnings Total liabilities and equity $ 26,722 75,147 94,484 8,605 243,469 $448,427 $ 31,545 $ 32,859 55, 744 41,664 72,232 47,131 7,875 3,544 219,179 200,202 $ 386,575 $ 325,400 $ 109,425 $ 65,331 $ 43,382 85,147 162,500 91,355 $448,427 89,801 70,475 162,500 162,500 68,943 49,043 $ 386,575 $ 325,400 The company's income statements for the Current Year and 1 Year Ago, follow. 1 Yr Ago $ 460,024 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 Yr $582,955 $ 355,603 180,716 9,910 7,578 553,807 $ 29,148 $ 1.79 $299,016 116,386 10,581 6,900 $ 432,883 27, 141 1.67 $ For both the Current Year and 1 Year Ago, compute the following ratios: (2) Debt-to-equity ratio. Required information [The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ago 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, $10 par value Retained earnings Total liabilities and equity $ 26,722 75,147 94,484 8,605 243,469 $448,427 $ 31,545 $ 32,859 55,744 41,664 72,232 47,131 7,875 3,544 219,179 200,202 $ 386,575 $ 325,400 $ 109,425 $ 65,331 $ 43,382 85,147 162,500 91,355 $448,427 89,801 70,475 162,500 162,500 68,943 49,043 $ 386,575 $ 325,400 The company's income statements for the Current Year and 1 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 Yr $ 582,955 $ 355,603 180,716 9,910 7,578 553,807 $ 29,148 $ 1.79 1 Yr Ago $ 460,024 $ 299,016 116,386 10,581 6,900 432,883 $ 27,141 $ 1.67 For both the Current Year and 1 Year Ago, compute the following ratios: (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