I am really lost on this question.

Required Information Exercise 13-9 Analyzing risk and capital structure LO P3 [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ago At December 31 Assets Cash 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 Common stock, $ie par value Retained earnings Total liabilities and equity $ 32,552 98,197 118,622 11, 018 302,600 $562,989 $ 39,215 $ 40,449 66,588 53,932 89,787 57,431 9,988 4,540 279,757 256,348 $ 485,335 $ 412,780 $142,988 $ 82,842 $ 54,476 102,667 162,580 154,834 $562,989 113,860 91,207 162,500 162,5ee 126, 133 104,517 $ 485, 335 $ 412,780 The company's income statements for the Current Year and 1 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 Current Yr $ 731,886 $ 446,450 226,885 12,442 9,515 695, 292 $ 36,594 1 Yr Ago $ 577,549 $375,407 146, 120 13, 284 8,663 543,474 $ 34,075 Earnings per share $ 2.25 $ 2.10 For both the Current Year and 1 Year Ago, compute the following ratios: Exercise 13-9 Part 1 (1) Debt and equity ratios. Debt Ratio Choose Numerator: Choose Denominator: Debt Ratio Debt ratio = Current Year: 1 %6 1 Year Ago: = %6 Equity Ratio Choose Numerator: Choose Denominator: = Equity Ratio Equity ratio %6 = Current Year: = 1 Year Ago: = %6 (2) Debt-to-equity ratio. Debt-To-Equity Ratio Choose Numerator: Choose Denominator: = Debt-To-Equity Ratio Debt-to-equity ratio Current Year: 0 to 1 1 Year Ago: 0 (3-6) Times interest earned. (3-5) 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 3A Required 38 Times interest earned. Times Interest Earned Choose Numerator: Choose Denominator: Times Interest Earned Times interest earned times Current Year: 1 1 Year Ago: times (3-6) Times interest earned. (3-5) 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 3A Required 38 Based on times interest earned, is the company more or less risky for creditors in the Current Year versus 1 Year Ago? Times interest earned