i need help with this. please explain.

! 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 Ye Ago 2 Yrs Ago $ 30,841 90,279 112,385 10,230 278,987 $522,722 $ 37,131 $ 36,440 61,825 47,605 85,866 52,268 9.747 4,172 256.053 231,215 $ 450,622 9 371, 800 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 annet Common stock, 010 par value Retained earnings Total abilities and equity $132,761 $ 77,678 $ 47, 605 98,272 162,500 129.169 5522,722 100,534 83,611 162,500 162,500 109,910 71,884 $ 450,622 5 371,800 The company's income statements for the Current Year and 1 Year Ago, follow, 1 Ago $536,240 $340,556 135,667 12,334 Tor Year Ended December 31 sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total coats and expenses Net Income Warninge per share Current YE $679,539 $414,519 210,657 11,552 B04 645, 562 33,977 5 2.09 504,602 $ 31,637 5 1.95 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 1 Current Year: % 1 Year Ago: Equity Ratio Choose Numerator: Chooso Denominator: Equity Ratio Equity ratio % 1 Current Year: 1 Year Ago: Il Exercise 13-9 Part 2 (2) Debt-to-equity ratio. Debt-To-Equity Ratio Choose Numerator: Choose Denominator: 1 / Debt-To-Equity Ratio Debt-to-equity ratio O to 1 Current Year: 1 Year Ago: O to 1