Required information [The following information applies to thequestions displayed below.] Simon Company’s year-end balance sheetsfollow. At December 31 2017 2016 2015 Assets Cash $ 31,313 $ 36,602$ 36,999 Accounts receivable, net 88,959 63,420 49,332 Merchandiseinventory 110,719 83,805 53,069 Prepaid expenses 10,084 9,418 4,153Plant assets, net 284,405 259,755 233,947 Total assets $ 525,480 $453,000 $ 377,500 Liabilities and Equity Accounts payable $ 129,536$ 78,854 $ 50,827 Long-term notes payable secured by mortgages onplant assets 98,790 103,148 82,593 Common stock, $10 par value162,500 162,500 162,500 Retained earnings 134,654 108,498 81,580Total liabilities and equity $ 525,480 $ 453,000 $ 377,500 Thecompany’s income statements for the years ended December 31, 2017and 2016, follow. For Year Ended December 31 2017 2016 Sales $683,124 $ 539,070 Cost of goods sold $ 416,706 $ 350,396 Otheroperating expenses 211,768 136,385 Interest expense 11,613 12,399Income taxes 8,881 8,086 Total costs and expenses 648,968 507,266Net income $ 34,156 $ 31,804 Earnings per share $ 2.10 $ 1.96Calculate the company’s long-term risk and capital structurepositions at the end of 2017 and 2016 by computing the followingratios.

(1) Debt and equity ratios.

Debt Ratio Choose Numerator: / Choose Denominator: = Debt Ratio/ = Debt ratio 2017: / = % 2016: / = %

Equity Ratio Choose Numerator: / Choose Denominator: = EquityRatio / = Equity ratio 2017: / = % 2016: / = %

(2) Debt-to-equity ratio.

Debt-To-Equity Ratio Choose Numerator: / Choose Denominator: =Debt-To-Equity Ratio / = Debt-to-equity ratio 2017: / = 0 to 12016: / = 0 to 1