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 Long-term notes payable. Common stock, $10 par value Retained earnings Total liabilities and equity Current Year 1 Year Ago 2 Years Ago $ 40,376 69,965 $ 34,880 96,186 127,106 10,905 304,893 94,285 10, 391 279, 785 $ 494,802 $ 40,409 56,078 59,143 4,719 256,151 $ 416,500 $ 54,978 90,206 163,500 $ 573,970 $ 142,919 106,827 $ 83,622 113,804 162,500 162,500 161,724 134,876 107,816 $ 573,970 $ 494,802 $ 416,500 For both the current year and one year ago, compute the following ratios: 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 (1) Debt and equity ratios. Current Year $746,161 $ 455,158 231, 310 12,685 9,700 708, 853 $ 37,308 $ 2.30 1 Year Ago $ 382,729 148,978 13, 543 8,832 (2-a) Compute debt-to-equity ratio for the current year and one year ago. $ 588,814 554,074 $ 34,740 $ 2.14 (2-b) Based on debt-to-equity ratio, does the company have more or less debt in the current year versus one year ago? (3-a) Times interest earned. (3-b) Based on times interest earned, is the company more or less risky for creditors in the Current Year versus 1 Year Ago? Required 1 Required 2A Required 2B Required 3A Required 3B Compute debt and equity ratio for the current year and one year ago. Denominator: = Debt Ratio Total assets = Debt ratio = 0 96 Debt Ratio Numerator: Total liabilities Current Year: 1 Year Ago: Current Year: 1 Year Ago: 11 Equity Ratio Numerator: Denominator: = 0 % =Equity Ratio #E Equity ratio 096 0 % Required 1 Required 2A Required 2B Required 3A Required 3B Compute debt-to-equity ratio for the current year and one year ago. Current Year: 1 Year Ago: Numerator: Debt-To-Equity Ratio Denominator: = Debt-To-Equity Ratio = Debt-to-equity ratio 11 11 = 0 to 1 0 to 1 < Required 1 Required 2B > Required 1 Required 2A Required 28 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 0 times 0 times