Required information [The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. 2017 2016 2015 2017 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 $ 31,800 $ 35,625 $ 37,800 89,500 62,500 50,200 112,500 82,500 54, eee 19,709 9,375 w5, eee 278,580 255, eee 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, 102 104,750 79,250 $523,000 $445,000 $ 377,500 The AAAAAAAAAAAAAAAA Part 1 of 3 The company's income statements for the years ended December 31, 2017 and 2016, follow 9.09 points 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 $673,5ee $411, 225 209.550 12,100 9,525 642,400 $ 31.100 2016 $ 532, eee $ 345,500 134,98e 13,300 8,845 502,625 $ 29,375 $ 1.9 Calculate the company's long-term risk and capital structure positions at the end of 2017 and 2016 by computing the following ratios (1) Debt and equity ratios. Return to questo (1) Debt and equity ratios Answer is complete but not entirely correct. Part 1 of 3 Debt Ratio Choose Numerator: Total liabilities Debt Ratio Choose Denominator Net sales S 673,500 532.000 9.09 points Debt ratio 523,000 X 445,000 3 - - 77.7 838 % % 2016: Equity Ratio Choose Denominator: Choose Numerator: Total equity Total assets Equity Ratio Equity ratio 100.0 100.0 2017: S 523,000 445,000 523,000 445,000 - - % % 2016: (2) Debt-to-equity ratio. Debt-To-Equity Ratio Choose Denominator Choose Numerator: Debt-To-Equity Ratio Debt-to-equity ratio 0 to 1 0 to 1 2017: 2016: (3) Times interest earned. Times Interest Earned 1 Choose Denominator: Choose Numerator: = Times Interest Earned Times interest earned 2017: times 2016: times
