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 $ 29,506 85,516 108,596 9,407 267,071 $500,096 $ 35,179 $ 33,841 60,356 45,121 81,352 50,520 8,782 3,914 245,448 215,404 $ 431,117 $ 348,800 $ 122,033 $ 72,859 $ 45,121 95,898 162,500 119,665 $500,096 101, 140 77,085 162,500 162,500 94,618 64,094 $ 431,117 $ 348,800 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 $ 650,125 $396,576 201,539 11,052 8,452 617,619 $ 32,506 1 Yr Ago $ 513,029 $333,469 129,796 11,800 7,695 482,760 $ 30,269 $ 1.86 $ 2.00 For both the Current Year and 1 Year Ago, compute the following ratios: (1) Debt and equity ratios. Debt Ratio 1 Choose Numerator: Choose Denominator: Debt Ratio 1 Debt ratio Current Year: 1 % 1 Year Ago: - % 1 Equity Ratio Choose Numerator: Choose Denominator: Equity Ratio Equity ratio % Current Year: 1 Year Ago: 1 = % (2) Debt-to-equity ratio. Debt-To-Equity Ratio Choose Numerator: 1 Choose Denominator: 1 11 Debt-To-Equity Ratio Debt-to-equity ratio to 1 1 11 Current Year: 1 Year Ago: 1 11 to 1 (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? Complete this question by entering your answers in the tabs below. Required 3A Required 3B Times interest earned. Times Interest Earned Choose Numerator: = 1 Choose Denominator: 1 Times Interest Earned Times interest earned times times 1 = Current Year: 1 Year Ago: / Required 3A Required 3B >