Refer to the Simon Company information in Exercises 13-6 and 13-8. Compare the company’s long-term risk and capital structure positions at the end of 2018 and 2017 by computing these ratios:

(1) Debt and equity ratios—percent rounded to one decimal,

(2) Debt-to-equity ratio—rounded to two decimals,

(3) Times interest earned—rounded to one decimal. Comment on these ratio results.

Exercises 13-6

Exercises 13-8

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At December 31 2018 2017 2016 Assets Cash... $ 31,800 $ 35,625 $ 37,800 Accounts receivable, net.. 89,500 62,500 50,200 Merchandise inventory.. 112,500 82,500 54,000 Prepaid expenses... Plant assets, net.. 10,700 9,375 5,000 278,500 255,000 230,500 Total assets.. $523.000 $445,000 $377,500 Liabilities and Equity Accounts payable..... $129,900 $ 75.250 $ 51,250 Long-term notes payable secured by mortgages on plant assets 98,500 101,500 83,500 Common stock, $10 par value. Retained earnings... Total liabilities and equity.. 163,500 163,500 163,500 79,250 104,750 $523.000 $445,000 $377,500 131,100