I have a question about what is meant by "2021 Numerator and 2021 Denominator" in the financial ratios we are doing in class. How do you calculate them and where do you get that information? What does it mean?

And for the financial ratio calculations do we use the balance sheet or income statement?

Here is our assignment for context:

Step 2. Log into WRDS and download balance sheets and income statements for the above three years. Compute the financial ratios for your company. For this assignment, use the designated formulas listed in Table 3. You are welcome to use EXCEL or with a calculator. For additional help finding the financial statements, see the instructions below and review the step-by-step video provided in WTClass. Step 3. Go to WRDS Financial Ratios Visualization for (GICS Sector) industry information and compare your results with the industry averages you find. For this assignment, please use the industry averages located in WRDS. For additional help finding the Industry averages, see the instructions below and review the step-by-step video provided in WTClass.| Step 4. Put your analysis in the format below or create your own so long as it is easy to read in Table 2