Required information (The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. 2017 2016 2015 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 $ 29,200 $ 35,177 $ 35,917 84,630 61,559 48,866 108,578 78,930 53,094 9,499 9,142 4,031 273,105 250,547 228,292 $ 505,012 $435,355 $ 370,200 $121,976 $ 72,103 $ 48,866 97,791 98,129 80,996 162,500 162,500 162,500 122,745 102,623 77,838 $505,012 $435,355 $ 370,200 The company's income statements for the years ended December 31, 2017 and 2016, follow. 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 $656,516 $400,475 203,520 11,161 8,535 623, 691 $ 32,825 2016 $ 518,072 $336, 747 131,072 11,916 7,771 487,506 $ 30,566 $ 2.02 $ 1.88 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. Il Choose Numerator: Debt Ratio 1 Choose Denominator: 1 Debt Ratio Debt ratio 11 2017: 11 2016: 11 Choose Numerator: Equity Ratio 1 Choose Denominator: 1 I! Equity Ratio Equity ratio % 2017: I 2016: = % (2) Debt-to-equity ratio. Debt-To-Equity Ratio Choose Denominator: Choose Numerator: = 1 Debt-To-Equity Ratio Debt-to-equity ratio 0 to 1 2017: 1 11 2016: 0 to 1 (3) Times interest earned. Times Interest Earned I Choose Denominator: Choose Numerator: = 11 Times Interest Earned Times interest earned times 2017: = 2016: 11 times