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 $ 590,904 $ 148,606 Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity Current Year 1 Year Ago 2 Years Ago $ 35,909 102,055 128,315 $ 39,937 $ 43,286 72,029 95,181 10,890 313,735 108,868 162,500 170,930 10,590 291,663 $ 509,400 $ 83,506 114,819 162,500 148,575 $ 590,904 $ 509,400 55,474 60,882 4,529 260,329 $ 424,500 $ 56,034 94,753 162,500 111,213 $ 424,500 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 Total costs and expenses Net income Earnings per share Current Year $ 768,175 $ 468,587 1 Year Ago $ 606, 186 238,134 13,059 9,986 729,766 $ 38,409 $ 394,021 153,365 13,942 9,093 $ 2.36 570,421 $ 35,765 $ 2.20 es (1) Compute debt and equity ratio for the current year and one year ago. Current Year: 1 Year Ago: Current Year: 1 Year Ago: Debt Ratio Numerator: Denominator: Debt Ratio Debt ratio = Equity Ratio Numerator: Denominator: = Equity Ratio = Equity ratio 1 1 = == Required ZA Required 2B sed Dok Compute debt-to-equity ratio for the current year and one year ago. int rences Current Year: 1 Year Ago: Numerator: Debt-To-Equity Ratio Denominator: Debt-To-Equity Ratio = Debt-to-equity ratio =1 0 to 1 0 to 1 Required 2B > sed ook im erences Compute times interest earned for the current year and one year ago. Current Year: 1 Year Ago: Times Interest Earned Numerator: Denominator: Times Interest Earned Times interest eamed 1 fimes Required 3B > times