[The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. 2017 2016 2015 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 $ 29,378 $ 34, 341 $ 33,678 84,296 60,096 46,292 104,916 78,618 48,305 9,366 9,195 3,781 269,982 247,007 218,644 $497,938 $429,257 $ 350,700 $125,226 $ 74,721 $ 46,292 92,676 101,691 75,180 162,500 162,500 162,500 117,536 90, 345 66,728 $497,938 $429,257 $ 350,700 The company's income statements for the years ended December 31, 2017 and 2016, follow. For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income taxes Total costs and expenses Net income Earnings per share 2017 $647,319 $394,865 200,669 11,004 8,415 614,953 $ 32,366 2016 $ 510,816 $332,030 129,236 11,749 7,662 480,677 $ 30,139 $ 1.85 $ 1.99 Calculate the company's long-term risk and capital structure positions at the end of 2017 and 2016 by computing the following ratios. Exercise 13-9 Part 1 (1) Debt and equity ratios. Choose Numerator: Total liabilities Debt Ratio Debt ratio 2017: 2016: Debt Ratio Choose Denominator: Total assets IS 497,938 $ 429,257 Equity Ratio 1 Choose Denominator: 1 Total assets 497,938 429,257 = Choose Numerator: Total equity Equity Ratio Equity ratio 2017: = 2016: $ (2) Debt-to-equity ratio. Debt-To-Equity Ratio I Choose Denominator: Choose Numerator: 11 Debt-To-Equity Ratio Debt-to-equity ratio 0 to 1 0 to 1 2017: 11 2016: 11 Exercise 13-9 Part 3 (3) Times interest earned. Times Interest Earned 1 Choose Denominator: Choose Numerator: Times Interest Earned Times interest earned times 2017: 2016: times