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 $ 29,259 $ 34,892 $ 34,921 Accounts receivable, net 84,802 60,457 45,621 Merchandise inventory 108,777 79,890 50,595 Prepaid expenses 9,518 8,978 3,919 Plant assets, net 268,574 247,619 221, 244 Total assets $500,930 $431,836 $ 356,300 Liabilities and Equity Accounts payable $120,990 $ 72,250 $ 46,091 Long-term notes payable secured by mortgages on plant assets 95, 117 99,322 77,167 Common stock, $10 par value 162,500 162,500 162,500 Retained earnings 122, 323 97,764 70,542 Total liabilities and equity $500,930 $431,836 $ 356,300 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 $651,209 $397,237 201,875 11,071 8,466 618,649 $ 32,560 2016 $ 513, 885 $334,025 130,013 11,819 7,788 483,565 $ 30,320 $ 1.87 $ 2.00 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. Debt Ratio Choose Denominator: Choose Numerator: = - Debt Ratio Debt ratio % % 11 2017: 2016: 11 Equity Ratio Choose Denominator: Choose Numerator: II Equity Ratio = Equity ratio 2017: 1 11 % 2016: 1 = % (2) Debt-to-equity ratio. Choose Numerator: Debt-To-Equity Ratio 1 Choose Denominator: 1 = Debt-To-Equity Ratio Debt-to-equity ratio to 1 to 1 2017: / = = 2016: / (3) Times interest earned. Choose Numerator: Times Interest Earned 1 Choose Denominator: 1 Times Interest Earned Times interest earned = = 2017: / times 2016: 1 times