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Required information [The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. At December 31 2017 2016 2015 Assets Cash

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Required information [The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. At December 31 2017 2016 2015 Assets Cash $ 33,152 $ 40,333 $ 40,370 Accounts receivable, net 100,006 69,199 53,283 Merchandise inventory 120, 808 89,613 59,075 Prepaid expenses 10,567 10,276 4,667 Plant assets, net 308,832 284,859 254,505 Total assets $573,365 $494,280 $ 411,900 Liabilities and Equity Accounts payable $144,196 $ 82,698 $ 54,915 Long-term notes payable secured by mortgages on plant assets 105,637 112,548 90,120 Common stock, $10 par value 162,500 162,500 162,500 Retained earnings 161,032 136,534 104,365 Total liabilities and equity $573,365 $494,280 $411,900 37 The company's income statements for the years ended December 31, 2017 and 2016, follow. For Year Ended December 31 2017 2016 Sales $745,375 $ 588,193 Cost of goods sold $454,679 $382,325 other operating expenses 231,066 148,813 Interest expense 12,671 13,528 Income taxes 9,690 8,823 Total costs and expenses 708, 106 553,489 Net income $ 37,269 $ 34,704 Earningu per share 2.29 $ 2.14 Calculate the company's long-term risk and capital structure positions at the end of 2017 and 2016 by computing the following ratios. Net income $ 37,269 $ 34,704 Earnings per share $ 2.29 $ 2.14 Calculate the company's long-term risk and capital structure positions at the end of 2017 and 2016 by compu following ratios. 58 (2) Debt-to-equity ratio. Debt-To-Equity Ratio Choose Denominator: Choose Numerator: . = Debt-To-Equity Ratio Debt-to-equity ratio to 1 2017: 1 2016: to 1 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 $745,375 $454,679 231,066 12,671 9,690 708, 106 $ 37,269 $ 2.29 2016 $588,193 $382,325 148,813 13,528 8,823 553,489 $ 34, 704 $ 2.14 Calculate the company's long-term risk and capital structure positions at the end of 2017 and 2016 by computing the following ratios. (3) Times interest earned. Choose Numerator: Times Interest Eamed Choose Denominator: 1 Times Interest Earned Times interest eamed 2017: 1 times times 2016: 1

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