Simon Company's year-end balance sheets follow.

At December 31	Current Year	1 Year Ago	2 Years Ago
Assets
Cash	$ 33,955	$ 39,285	$ 40,946
Accounts receivable, net	102,427	69,457	54,049
Merchandise inventory	130,045	95,529	59,906
Prepaid expenses	11,492	10,844	4,504
Plant assets, net	309,326	291,131	254,195
Total assets	$ 587,245	$ 506,246	$ 413,600
Liabilities and Equity
Accounts payable	$ 143,300	$ 88,122	$ 55,141
Long-term notes payable	108,194	116,437	92,320
Common stock, $10 par value	162,500	162,500	162,500
Retained earnings	173,251	139,187	103,639
Total liabilities and equity	$ 587,245	$ 506,246	$ 413,600

The companys income statements for the current year and one year ago, follow.

For Year Ended December 31	Current Year		1 Year Ago
Sales		$ 763,419		$ 602,433
Cost of goods sold	$ 465,686		$ 391,581
Other operating expenses	236,660		152,416
Interest expense	12,978		13,856
Income tax expense	9,924		9,036
Total costs and expenses		725,248		566,889
Net income		$ 38,171		$ 35,544
Earnings per share		$ 2.35		$ 2.19

For both the current year and one 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?

Compute debt and equity ratio for the current year and one year ago.

Debt Ratio
	Numerator:	/	Denominator:	=	Debt Ratio
	Total liabilities	/	Total assets	=	Debt ratio
Current Year:		/		=	0	%
1 Year Ago:		/		=	0	%
Equity Ratio
	Numerator:	/	Denominator:	=	Equity Ratio
		/		=	Equity ratio
Current Year:		/		=	0	%
1 Year Ago:		/		=	0	%

Compute debt-to-equity ratio for the current year and one year ago.

Debt-To-Equity Ratio
	Numerator:	/	Denominator:	=	Debt-To-Equity Ratio
		/		=	Debt-to-equity ratio
Current Year:		/		=	0	to 1
1 Year Ago:		/		=	0	to 1

Compute times interest earned for the current year and one year ago.

Times Interest Earned
	Numerator:	/	Denominator:	=	Times Interest Earned
		/		=	Times interest earned
Current Year:		/		=	0	times
1 Year Ago:		/		=	0	times

Compute profit margin ratio for the current year and one year ago.

Profit Margin Ratio
	Numerator:	/	Denominator:	=	Profit Margin Ratio
		/		=	Profit margin ratio
Current Year:		/		=		%
1 Year Ago:		/		=		%

Compute total asset turnover for the current year and one year ago.

Total Asset Turnover
	Numerator:	/	Denominator:	=	Total Asset Turnover
		/		=	Total asset turnover
Current Year:		/		=		times
1 Year Ago:		/		=		times

Compute return on total assets for the current year and one year ago.

Return On Total Assets
	Numerator:	/	Denominator:	=	Return On Total Assets
		/		=	Return on total assets
Current Year:		/		=		%
1 Year Ago:		/		=		%