(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 $ 29,283 $ 32,887 $ 34,607 85,703 57,552 47,056 101,478 79,931 47,672 9,060 8,985 3,731 261,065 240, 118 213,034 $486,589 $419,473 $346, 100 $124,795 $ 72,309 $ 45,228 93,308 96,479 75,723 162,500 162,500 162,500 105,986 88,185 62,649 $486,589 $419,473 $346, 100 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 $632,566 $385,865 196,095 10,754 8,223 600,937 $ 31,629 $ 1.95 2016 $ 499,173 $324,462 126,291 11,481 7.488 469,722 $ 29,451 $ 1.81 Calculate the company's long-term risk and capital structure positions at the end of 2017 and 2016 by computing the (1) Debt and equity ratios. Debt Ratio 1 Choose Denominator: Choose Numerator: = Debt Ratio Debt ratio 2017: 2016: = = 1 11 Equity Ratio I Choose Denominator: Choose Numerator: = Equity Ratio Equity ratio 2017: 2016: (2) Debt-to-equity ratio. Debt-To-Equity Ratio Choose Denominator: Choose Numerator: = Debt-To-Equity Ratio Debt-to-equity ratio 0 to 1 2017: 2016: = = 1 Oto 1 (3) Times interest earned. Times Interest Earned 1 Choose Denominator: Choose Numerator: = Times Interest Earned Times interest earned times 2017: 2016: times