Simon Company's year-end balance sheets follow. At December 31 Assets Cash Current Year 1 Year Ago 2 Years Ago Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable $ 28,720 85,737 102,565 8,971 260,789 90,600 $ 486,782 $ 119,997 Long-term notes payable Common stock, $10 par value Total liabilities and equity Retained earnings $ 34,243 60,512 76,081 8,812 239,992 $ 419,640 $ 68,792 94,587 162,500 93,761 163,500 112,685 $ 486,782 $ 419,640 For both the current year and one year ago, compute the following ratios: $ 34,967 46,160 48,664 3,885 216,024 $ 349,700 $ 45,237 78,829 162,500 63,134 $ 349,700 Exercise 13-9 (Algo) Analyzing risk and capital structure LO P3 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 $ 632,817 $ 386,018 196,173 1 Year Ago $ 499,372 10,758 8,227 601,176 $ 31,641 $ 324,592 126,341 11,486 7,491 469,910 $ 29,462 $ 1.95 $ 1.81 (1) Debt and equity ratios. (2-a) Compute debt-to-equity ratio for the current year and one year ago. (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?