Exercise 17-9 (Algo) Analyzing risk and capital structure LO P3 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 Earnings per share (1) Debt and equity ratios. Current Year $ 354,894 180,356 $ 581,794 9,890 7,563 $ 29,091 552,703 $ 1.79 1 Year Ago $ 298,420 116,154 10,559 6,887 (2-a) Compute debt-to-equity ratio for the current year and one year ago. $ 459,108 432,020 $ 27,088 $ 1.67 (2-b) Based on debt-to-equity ratio, does the company have more or less debt in the current year versus one year ago? (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 1 Required 2A Required 2B Required 3A Required 38 Compute debt-to-equity ratio for the current year and one year ago. Numerator: Total liabilities Current Year: 1 Year Ago: Debt-To-Equity Ratio Denominator: = Debt-To-Equity Ratio Total equity = Debt-to-equity ratio 1 = 0 to 1 1 = 0 to 1