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 $ 32,954 $ 37,749 $ 40,526 92,644 66,061 54,035 121,286 86,404 58,704 10,294 10, 415 4,592 301,357 280,867 1247,443 $558,535 $481,496 $405,300 $139,075 $ 81,373 $ 53,500 103,955 114,066 86,884 162,500 162,500 162,500 153,005 123, 557 102,416 $558,535 $481, 496 $405,300 The company's income statements for the years ended December 31, 2017 and 2016, follow. 2016 $ 572,980 $ 372.437 144,964 13,279 Tor 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 2012 $726,096 $442,919 225,090 12,344 9.439 639,792 $36,304 $ 2.23 $3975 53.805 $ 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. Choose Numerator: Debt Ratio 1 Choose Denominator: Cost of goods sold Debt Ratio Current assets 2017: = Debt ratio 0 % 0 % 2016: Choose Numerator: Equity Ratio Choose Denominator: Current liabilities = Equity Ratio Equity ratio 0 % 0 % 2017: 2016: (3) Times interest earned. Times Interest Earned 1 Choose Denominator: Choose Numerator: Times Interest Earned Times interest earned times 2017: 2016: times (1) Debt and equity ratios. Debt Ratio 1 Choose Denominator: 11 Choose Numerator: Debt Ratio Debt ratio % 2017: 1 % 1 2016: Choose Numerator: Equity Ratio Choose Denominator: 1 1 1 = + Equity Ratio Equity ratio % 2017: 1 2016