Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Common stock, $10 par value Long-term notes payable Retained earnings Total liabilities and equity $ 37,650 50,200 Current Year 1 Year Ago 2 Years Ago $ 35,063 61,986 85,220 9,110 255,854 $ 31,527 90,487 110,424 9,660 276,692 $ 518,790 $ 125,303 95,582 162,500 $ 447,233 $ 75,582 100,806 162,500 108,345 135,405 $ 518,790 $ 447,233 53,463 4,267 234,720 $ 380,300 $ 48,694 81,525 162,500 87,581 $ 380,300 The company's income statements for the current year and one year ago, follow. For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Current Year $ 674,427 $ 411,400 209,072 11,465 8,768 1 Year Ago $ 532,207 $ 345,935 134,648 12,241 7,983 Total costs and expenses Net income 640,705 $ 33,722 Earnings per share $ 2.08 For both the current year and one year ago, compute the following ratios: 500,807 $ 31,400. $1.93 (1) Compute debt and equity ratio for the current year and one year ago. Debt Ratio Numerator: Denominator: Current liabilities Total assets Current Year: 1 Year Ago: ences 1 $ 1 $ Equity Ratio Numerator: Denominator: Total equity Total assets Current Year: $ 1 Year Ago: Debt Ratio = Debt ratio 518,790 = % 447,233 = % Equity Ratio = Equity ratio 518,790 = 447,790 = (2) Compute debt-to-equity ratio for the current year and one year ago. Current Year: 1 Year Ago: Numerator: Total liabilities Debt-To-Equity Ratio Denominator: Debt-To-Equity Ratio Total equity == Debt-to-equity ratio = 0 to 1 = 0 to 1 (3-a) Compute times interest earned for the current year and one year ago. (3-b) Based on times interest earned, is the company more or less risky for creditors in the Current Year versus 1 Year Ago? Complete this question by entering your answers in the tabs below. Required 3A Required 38 Compute times interest earned for the current year and one year ago. Current Year: 1 Year Ago: Numerator: Times Interest Earned Denominator: Times Interest Earned Times interest earned times fimes Required 38 >