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 $ 34,467 $ 41,917 $ 42,816 98,888 70,506 57,653 128, 139 95,051 60,894 11,100 10,896 4,757 317,500 290,332 262,170 $590,094 $508,702 $ 428,200 $145,464 86,830 $ 57,088 110,938 119,341 93,686 162,500 162,500 162,500 171,192 140,031 114,926 $590,094 $508,702 $ 428,200 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 2017 $ 767,122 $ 467,944 237,808 13,041 9,973 728,766 $ 38,356 2016 $ 605,355 $393,481 153, 155 13,923 9,080 569,639 $ 35,716 $ 35,716 Net income Earnings per share $ 38,356 $ 2.36 $ 2.28 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: Total liabilities Debt Ratio Debt ratio 2017: % 2016: Debt Ratio Choose Denominator: Total assets 1 $ 590,094 - 1 $ 508,702) = Equity Ratio Choose Denominator: / Total assets = $ 590,094 - 1 $ 508.702) = Choose Numerator: Total equity Equity Ratio Equity ratio % 2017: % 2016: Calculate the company's long-term risk and capital structure positions at the end of 2 following ratios. (2) Debt-to-equity ratio. Choose Numerator: Debt-To-Equity Ratio 1 Choose Denominator: Total equity Total liabilities = Debt-To-Equity Ratio Debt-to-equity ratio 0 to 1 0 to 1 2017: 11 1 11 2016: Calculate the company's long-term risk and capital structure positions at the end of 2017 and 2016 by computing following ratios. (3) Times interest earned. Choose Numerator: Times Interest Farned Choose Denominator: 1 Times Interest Earned Times interest earned 2017: times 2016: 7 times