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Simon Companys year-end balance sheets follow.

At December 31	2017			2016			2015
Assets
Cash	$	36,335		$	42,472		$	42,524
Accounts receivable, net		107,459			73,568			56,120
Merchandise inventory		139,163			102,226			60,994
Prepaid expenses		12,179			11,377			4,773
Plant assets, net		333,281			312,096			273,889
Total assets	$	628,417		$	541,739		$	438,300
Liabilities and Equity
Accounts payable	$	159,605		$	89,723		$	59,013
Long-term notes payable secured by mortgages on plant assets		120,505			123,354			94,927
Common stock, $10 par value		162,500			162,500			162,500
Retained earnings		185,807			166,162			121,860
Total liabilities and equity	$	628,417		$	541,739		$	438,300

The companys income statements for the years ended December 31, 2017 and 2016, follow.

For Year Ended December 31	2017						2016
Sales				$	816,942					$	644,669
Cost of goods sold	$	498,335					$	419,035
Other operating expenses		253,252						163,101
Interest expense		13,888						14,827
Income taxes		10,620						9,670
Total costs and expenses					776,095						606,633
Net income				$	40,847					$	38,036
Earnings per share				$	2.51					$	2.34

Calculate the companys long-term risk and capital structure positions at the end of 2017 and 2016 by computing the following ratios.

(1) Debt and equity ratios. Debt Ratio 1 Choose Denominator: Choose Numerator: = Debt Ratio Debt ratio 2017: 2016: Equity Ratio Choose Denominator: Choose Numerator: = Equity Ratio Equity ratio 2017: 2016: (2) Debt-to-equity ratio. Debt-To-Equity Ratio 1. Choose Denominator: Choose Numerator: Debt-To-Equity Ratio Debt-to-equity ratio to 1 2017: 2016: - = = = 1 1 to 1 (3) Times interest earned. Times Interest Earned 1 Choose Denominator: Choose Numerator: Times Interest Earned Times interest earned times 2017: 2016: times

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