Simon Company's year-end balance sheets follow.

At December 31 Current Yr 1 Yr Ago 2 Yrs Ago

Assets

Cash $ 25,747 $30,394 $ 31,037

Accounts receivable, net 74,624 52,669 41,792

Merchandise inventory 94,754 69,598 43,195

Prepaid expenses 8,209 7,979 3,414

Plant assets, net 228,743 211,840 190,962

Total assets $ 432,077 $ 372,480 $ 310,400

Liabilities and Equity

Accounts payable $ 109,739 $ 63,579 $ 41,383

Long-term notes payable secured by

mortgages on plant assets 79,606 84,814 67,226

Common stock, $10 par value 162,500 162,500 162,500

Retained earnings 80,232 61,587 39,291

Total liabilities and equity $ 432,077 $ 372,480 $ 310,400

The company's income statements for the Current Year and 1 Year Ago, follow.

For Year Ended December 31 Current Yr 1 Yr Ago

Sales $ 561,700 $ 443,251

Cost of goods sold $ 342,637 $ 288,113

Other operating expenses 174,127 112,143

Interest expense 9,549 10,195

Income tax expense 7,302 6,649

Total costs and expenses 533,615 417,100

Net income $ 28,085 $ 26,151

Earnings per share $ 1.73 $ 1.60

For both the Current Year and 1 Year Ago, compute the following ratios:

(1)Debt and equity ratios.

(2)Debt-to-equity ratio.

(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?