Required information [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Assets Current Year 1 Year Ago 2 Years Ago Cash $ 33,735 Accounts receivable, net $ 40,238 71,825 Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity $ 583,451 Accounts payable $ 149,638 Long-term notes payable Common stock, $10 par value Retained earnings 107,495 163,500 162,818 $ 86,703 113,371 163,500 139,401 Total liabilities and equity $ 583,451 $ 502,975 100,768 122,933 11,307 314,708 90,259 10,668 289,985 $ 502,975 $ 43,613 55,327 60,126 4,564 264,070 $ 427,700 $ 56,456 96,412 163,500 111,332 $ 427,700 For both the current year and one year ago, compute the following ratios: The company's income statements for the current year and one 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 Year $ 758,486 $ 462,676 235,131 12,894 9,860 720,561 $ 37,925 $ 2.33 1 Year Ago $ 598,540 $ 389,051 151,431 13,766 8,978 563,226 $ 35,314 $ 2.17 (1) Debt and equity ratios. (2-a) Compute debt-to-equity ratio for the current year and one year ago. (2-b) Based on debt-to-equity ratio, does the company have more or less debt in the current year versus one year ago? (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 1 Required 2A Required 2B Required 3A Required 3B Compute debt and equity ratio for the current year and one year ago. Current Year: 1 Year Ago: Current Year: 1 Year Ago: Debt Ratio Numerator: 1 1 Denominator: Debt Ratio = Debt ratio % % Equity Ratio Numerator: Denominator: = Equity Ratio 1 = Equity ratio = % % Compute debt-to-equity ratio for the current year and one year ago. Current Year: 1 Year Ago: Numerator: Debt-To-Equity Ratio Denominator: = Debt-To-Equity Ratio = Debt-to-equity ratio = II to 1 to 1 Based on debt-to-equity ratio, does the company have more or less debt in the current year versus one year ago? Based on debt-to-equity ratio, the company has debt in the current year versus one year ago. Compute times interest earned for the current year and one year ago. Current Year: 1 Year Ago: Numerator: Times Interest Earned Denominator: =Times Interest Earned = Times interest earned 1 = times = times Based on times interest earned, is the company more or less risky for creditors in the Current Year versus 1 Year Ago? Based on times interest earned, the company is for creditors in the current year versus one year ago