Required information [The following information applies to the questions displayed below.] Simon Companys year-end balance sheets follow. At December 31 2017 2016 2015 Assets Cash $ 31,313 $ 36,602 $ 36,999 Accounts receivable, net 88,959 63,420 49,332 Merchandise inventory 110,719 83,805 53,069 Prepaid expenses 10,084 9,418 4,153 Plant assets, net 284,405 259,755 233,947 Total assets $ 525,480 $ 453,000 $ 377,500 Liabilities and Equity Accounts payable $ 129,536 $ 78,854 $ 50,827 Long-term notes payable secured by mortgages on plant assets 98,790 103,148 82,593 Common stock, $10 par value 162,500 162,500 162,500 Retained earnings 134,654 108,498 81,580 Total liabilities and equity $ 525,480 $ 453,000 $ 377,500 The companys income statements for the years ended December 31, 2017 and 2016, follow. For Year Ended December 31 2017 2016 Sales $ 683,124 $ 539,070 Cost of goods sold $ 416,706 $ 350,396 Other operating expenses 211,768 136,385 Interest expense 11,613 12,399 Income taxes 8,881 8,086 Total costs and expenses 648,968 507,266 Net income $ 34,156 $ 31,804 Earnings per share $ 2.10 $ 1.96 Calculate the companys long-term risk and capital structure positions at the end of 2017 and 2016 by computing the following ratios.

(1) Debt and equity ratios.

Debt Ratio Choose Numerator: / Choose Denominator: = Debt Ratio / = Debt ratio 2017: / = % 2016: / = %

Equity Ratio Choose Numerator: / Choose Denominator: = Equity Ratio / = Equity ratio 2017: / = % 2016: / = %

(2) Debt-to-equity ratio.

Debt-To-Equity Ratio Choose Numerator: / Choose Denominator: = Debt-To-Equity Ratio / = Debt-to-equity ratio 2017: / = 0 to 1 2016: / = 0 to 1