Required information Exercise 13-9 Risk and capital structure analysis LO P3 The following information applies to the questions displayed below] Simon Company's year-end balance sheets follow. At December 31 Assets 2017 2016 2915 $ 32,455 5 37,194 89,456 65,089 113,633 84.291 10,247 9,861 293, 519 268,488 $539,311 5464,923 $ 36,837 5 1, 142 54,471 4,135 237,015 S 383,600 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 Conon stock, $10 par value Retained earnings Total liabilities and equity 5136,974 $ 78,572 $ 49,622 99,363 106,932 82.232 162,50 162,500 162.500 140,474 116,919 89,246 $539,311 5464,923 $ 383,600 The company's income statements for the years ended December 31, 2017 and 2016, follow. 3 Prey 5 6 7 ark Chapter 13 Sad Help Save & Common stock, $10 par value Retained earnings Total liabilities and equity 162,500 162,500 162,590 140,474 116,919 89,246 $539,311 $464,923 $ 383,699 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 $701,194 $427,673 217,342 11,919 9,114 666,048 $ 35,056 $ 2.16 2016 $ 553, 258 $ 359,618 139,974 12,725 8,299 520,616 $ 32,642 $ 2.81 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 (11 Debt and equity ratios TUTTUVIY TOUUS. Exercise 13-9 Part 1 (1) Debt and equity ratios. Debt Ratio 1 Choose Denominator: Choose Numerator: Debt Ratio Debt ratio 2017: 2016: Equity Ratio 1 Choose Denominator: Choose Numerator: Equity Ratio Equity ratio 2017: 2016: Exercise 13-9 Part 2 (2) Debt-to-equity ratio. Debt-To-Equity Ratio I Choose Denominator: Choose Numerator. = Debt-To-Equity Ratio Debt-to-equity ratio to 1 to 1 2017: 2016: Exercise 13-9 Part 3 (3) Times interest earned. Times Interest Earned Choose Denominator: Choose Numerator: = Times Interest Earned Times interest earned times 2017: 2016: times