Required Information [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. 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 Common stock, $10 par value Retained earnings Total liabilities and equity Current Year 1 Year Ago 2 Years Ago $ 35,625 $ 31,800 89,500 112,500 10,700 278,500 $ 523,000 $ 129,900 98,500 62,500 82,500 9,375 255,000 $ 445,000 $ 75,250 101,500 163,500 131,100 163,500 104,750 $ 523,000 $ 445,000 For both the current year and one year ago, compute the following ratios: $ 37,800 50,200 54,000 5,000 230,500 $ 377,500 $ 51,250 83,500 163,500 79,250 $ 377,500 $ 532,000 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 1 Year Ago $ 673,500 $ 411,225 209,550 12,100 9,525 $ 345,500 134,980 13,300 8,845 642,400 $ 31,100 $ 1.90 502,625 $ 29,375 $ 1.80 (1) Debt and equity ratios. (2-0) 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? (3-0) 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 38 Compute debt and equity ratio for the current year and one year ago. Debt Ratio Current Year: 1 Year Ago: Numerator: 1 I 1 Denominator: Debt Ratio = Debt ratio = % = %