Simon Company's year-end balance sheets follow. Current Y 1 Yr Ago 2 Yrs Ago 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 secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 31,800 $ 35,625 $ 37,800 89,500 62,500 50,200 112,500 82,500 54,000 10,700 9,375 5,000 278,500 255,000 230, 500 $523,000 $445,000 $377,500 $129,900 $ 75,250 $ 51,250 98,500 163,500 131, 100 $523,000 101,500 83,500 163,500 163,500 104,750 79, 250 $445,000 $377,500 The company's income statements for the current year and 1 year ago, follow. For Year Ended December 31 Current Yr 1 Yr Ago Salon $673,500 $532,000 Coat of goods sold $411,225 $345,500 Other operating expenses 209,550 134,980 Interest expense 12,100 13,300 Income tax expense 9,525 8,845 Total costs and expenses 642,400 502,625 Net income $ 31,100 $ 29,375 Earnings per share 1.90 $ 1.80 For both the Current Year and 1 Year Ago, compute the following ratios: (1) Debt and equity ratios. Debt Ratio Choose Numerator: 1 Choose Denominator: Debt Ratio Debt ratio Current Year: 1 Year Ago: 1 % Choose Numerator: Equity Ratio Choose Denominator Equity Ratio 1 Equity ratio Current Year: 1 Year Ago: 1 % (2) Debt-to-equity ratio Choose Numerator: Debt-to-Equity Ratio 1 Choose Denominator: 1 Current Year: Debt-To-Equity Ratio Debt-to-equity ratio to 1 to 1 1 Year Ago: 1 (3-a) Times interest earned. (3-b) Based on times interest eamed, is the company more or less risky for creditors in the Current Year versus 1 Year Ago? Complete this question by entering your answers in the tabs below. Required 3A Required 38 Times interest earned Choose Numerator Time interest Enmed Choose Denominator Current Year: 1 Year Ago: Times Interest Earned Times interest earned times times Required 38 >