Simon Company's year-end balance sheets follow. Current Year 1 Year Ago 2 Years 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 Common stock, $10 par value Retained earnings Total liabilities and equity $ 32,690 93,816 115,620 10,321 290, 754 $ 543,201 $ 38,211 66,214 84,899 9,834 269,119 $ 468, 277 $ 39, 429 53,104 56,555 4,558 248,654 $ 402,300 $ 136,610 105,185 162,500 138,906 $ 543,201 $ 80,722 110,935 162,500 114,120 $ 468,277 $ 54,166 88,908 162,500 96,726 $ 402,300 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 Current Year $ 706, 161 $ 430,758 218,910 12,005 9,180 670,853 $ 35,308 1 Year Ago 557,250 $ 362, 213 140,984 12,817 8,359 524,373 $ 32,877 Earnings per share $ 2.17 $ 2.02 For both the current year and one year ago, compute the following ratios: Debt Ratio Numerator: / Denominator: = Debt Ratio 1 = Debt ratio Current Year: II % 1 Year Ago: / = % Equity Ratio Numerator: / Denominator: = Equity Ratio Equity ratio 1 = Current Year: 1 II % 1 Year Ago: / (2) Compute debt-to-equity ratio for the current year and one year ago. Debt-To-Equity Ratio Numerator: / Denominator: II Debt-To-Equity Ratio Debt-to-equity ratio to 1 Current Year: / = 1 Year Ago: / = to 1 Required 3A Required 3B Compute times interest earned for the current year and one year ago. Times Interest Earned Numerator: 1 Denominator: = Times Interest Earned / II Times interest earned Current Year: = times 1 Year Ago: = times Required 3A Required 3B Based on times interest earned, is the company more or less risky for creditors in the Current Year versus 1 Year Ago? Based on times interest earned, the company is for creditors in the current year versus one year ago