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 Current Year 1 Year Ago 2 Years Ago 101,224 11,044 299,002 $ 438,300 $ 35,266 107,480 132,486 11,825 329,158 $ 616,215 $ 43,348 76,602 $ 44,693 59,013 61,616 4,773 268,205 $ 531,220 Liabilities and Equity Accounts payable $ 150,369 $ 87,981 $ 59,013 Long-term notes payable 118,165 122,181 Common stock, $10 par value 162,500 162,500 97,833 162,500 Retained earnings 185,181 158,558 118,954 Total liabilities and equity $ 616,215 $ 531,220 $ 438,300 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 Total costs and expenses Net income Earnings per share Current Year $ 801,080 $ 488,659 248,335 13,618 10,414 $ 40,054 $ 2.46 1 Year Ago $ 632,152 761,026 $ 410,899 159,934 14,539 9,482 594,854 $ 37,298 $ 2.30 (1) Compute debt and equity ratio for the current year and one year ago. Current Year: 1 Year Ago: Current Year: 1 Year Ago: Numerator: Debt Ratio Denominator: = Debt Ratio = Debt ratio = % = % Equity Ratio Numerator: Denominator: Equity Ratio = Equity ratio = % = 5%