Simon Companys year-end balance sheets follow.

At December 31	2017			2016			2015
Assets
Cash	$	35,662		$	42,962		$	44,296
Accounts receivable, net		107,579			75,183			56,767
Merchandise inventory		131,281			97,382			62,302
Prepaid expenses		11,484			11,054			4,731
Plant assets, net		330,773			305,125			266,304
Total assets	$	616,779		$	531,706		$	434,400
Liabilities and Equity
Accounts payable	$	153,578		$	90,757		$	56,194
Long-term notes payable secured by mortgages on plant assets		118,274			124,738			97,922
Common stock, $10 par value		162,500			162,500			162,500
Retained earnings		182,427			153,711			117,784
Total liabilities and equity	$	616,779		$	531,706		$	434,400

The companys income statements for the years ended December 31, 2017 and 2016, follow.

For Year Ended December 31	2017						2016
Sales				$	801,813					$	632,730
Cost of goods sold	$	489,106					$	411,275
Other operating expenses		248,562						160,081
Interest expense		13,631						14,553
Income taxes		10,424						9,491
Total costs and expenses					761,723						595,400
Net income				$	40,090					$	37,330
Earnings per share				$	2.47					$	2.30

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.

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[The following information applies to the questions displayed below.] Simon Companys year-end balance sheets follow.

At December 31	2017			2016			2015
Assets
Cash	$	35,662		$	42,962		$	44,296
Accounts receivable, net		107,579			75,183			56,767
Merchandise inventory		131,281			97,382			62,302
Prepaid expenses		11,484			11,054			4,731
Plant assets, net		330,773			305,125			266,304
Total assets	$	616,779		$	531,706		$	434,400
Liabilities and Equity
Accounts payable	$	153,578		$	90,757		$	56,194
Long-term notes payable secured by mortgages on plant assets		118,274			124,738			97,922
Common stock, $10 par value		162,500			162,500			162,500
Retained earnings		182,427			153,711			117,784
Total liabilities and equity	$	616,779		$	531,706		$	434,400

The companys income statements for the years ended December 31, 2017 and 2016, follow.

For Year Ended December 31	2017						2016
Sales				$	801,813					$	632,730
Cost of goods sold	$	489,106					$	411,275
Other operating expenses		248,562						160,081
Interest expense		13,631						14,553
Income taxes		10,424						9,491
Total costs and expenses					761,723						595,400
Net income				$	40,090					$	37,330
Earnings per share				$	2.47					$	2.30

Calculate the companys long-term risk and capital structure positions at the end of 2017 and 2016 by computing the following ratios.

(2) Debt-to-equity ratio.

Simon Companys year-end balance sheets follow.

At December 31	2017			2016			2015
Assets
Cash	$	35,662		$	42,962		$	44,296
Accounts receivable, net		107,579			75,183			56,767
Merchandise inventory		131,281			97,382			62,302
Prepaid expenses		11,484			11,054			4,731
Plant assets, net		330,773			305,125			266,304
Total assets	$	616,779		$	531,706		$	434,400
Liabilities and Equity
Accounts payable	$	153,578		$	90,757		$	56,194
Long-term notes payable secured by mortgages on plant assets		118,274			124,738			97,922
Common stock, $10 par value		162,500			162,500			162,500
Retained earnings		182,427			153,711			117,784
Total liabilities and equity	$	616,779		$	531,706		$	434,400

The companys income statements for the years ended December 31, 2017 and 2016, follow.

For Year Ended December 31	2017						2016
Sales				$	801,813					$	632,730
Cost of goods sold	$	489,106					$	411,275
Other operating expenses		248,562						160,081
Interest expense		13,631						14,553
Income taxes		10,424						9,491
Total costs and expenses					761,723						595,400
Net income				$	40,090					$	37,330
Earnings per share				$	2.47					$	2.30

Calculate the companys long-term risk and capital structure positions at the end of 2017 and 2016 by computing the following ratios.

(3) Times interest earned.