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 $ 32,804 94,143 116,023 $ 36,841 $ 40,366 65,129 10,357 291,765 $545,092 $ 131,656 100,428 162,500 150,508 $ 545,092 86,063 9,572 272,302 $ 469,907 $ 81,003 108,079 162,500 118,325 51,690 59,045 4,396 248,203 $ 403,700 $ 52,223 89,218 162,500 99,759 $ 469,907 $ 403,700 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 $ 708,620 $ 432,258 219,672 12,047 9,212 673,189 $ 35,431 $ 2.18 1 Year Ago $ 559,189 $ 363,473 141,475 12,861 8,388 526,197 $ 32,992 $ 2.03 (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 96 96 Compute debt-to-equity ratio for the current year and one year ago. Debt-To-Equity Ratio Current Year: 1 Year Ago: Numerator: Denominator: Debt-To-Equity Ratio Debt-to-equity ratio. to 1 to 1 Required 2B > 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 earned times Required 38 > times