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(The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ago At December

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(The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. Current Yr 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 $ 24,331 70,518 88, 663 8,070 220,804 $412,386 $ 28,156 $ 29,928 49,771 39,505 65, 111 42,927 7,690 3,392 204,777 186,548 $ 355,505 $ 302,300 $102,684 $ 58,278 $ 40,303 77,529 162,500 69.673 $412,386 80,131 66, 140 162,500 162,500 54,596 33,357 $ 355,505 $ 302,300 The company's income statements for the Current Year and 1 Year Ago, follow. For Year Ended December 31 Sales Cont of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Earnings per share Current Yr $536,102 $327,022 166,192 9,114 6,969 509,297 $ 26,805 $ 1.65 1 Yr Ago $ 423,051 $274,983 107,032 9,730 6,346 398,091 $ 24,960 $ 1.54 (1) Debt and equity ratios. Debt Ratio Choose Numerator: 1 Choose Denominator: Debt Ratio / = Debt ratio % 1 Current Year: 1 Year Ago: % Equity Ratio Choose Numerator: 1 Choose Denominator: Equity Ratio Equity ratio % Current Year: 1 1 Year Ago: = = / % (2) Debt-to-equity ratio. Debt-To-Equity Ratio Choose Numerator: 1 Choose Denominator: Debt-To-Equity Ratio Debt-to-equity ratio to 1 Current Year: 1 1 Year Ago: to 1 (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? Complete this question by entering your answers in the tabs below. Required 3A Required 38 Times Interest earned. Times interest Earned 1 Choose Denominator Choose Numerator: Times Interest Earned Times interest earned times times 1 Current Year: 1 Year Ago: and DA Required 3B >

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