The following are liquidity, solvency and coverage ratios for both (2017 and 2015) years of K Corporation:

1. 2017 current ratio:$3,393.33 / $6,257.95 = 0.54

2015 current ratio:$3,588.56 / $3,485.39 = 1.03

2017 quick ratio:($1,763.36 + $835.30) / $6,257.95 = 0.42

2015 quick ratio:($1,316.73 + $1,197.16) / $3,485.39 = 0.72

2017 liabilities-to-equity = $25,863.17 / -$7,152.90 = -3.62

2015 liabilities-to-equity = $22,928.42 / $4,687.67 = 4.89

2017 total debt-to-equity = ($3,291.63 +$4,668.83) / -$7,152.90 = -1.11

2015 total debt-to-equity = ($6,910.81 + $1,133.96) / $4,687.67 = 1.72

2017 times interest earned = $1,907.84 / $1,438.29 = 1.33

2015 times interest earned = $1,634.84 / $1,666.90 = 0.98

2017 cash from operations to total debt = $295.98 / ($3,291.63 + $4,668.83) = 0.04

2015 cash from operations to total debt = $121.89 / ($6,910.81 + $1,133.96) = 0.02

2017 free operating cash flow to total debt = ($295.98 - $1,311.50) / ($3,291.63 + $4,668.83) = -0.13

2015 free operating cash flow to total debt = ($121.89 - $1,645.48) / ($6,910.81 + $1,133.96) = -0.19

What is your overall assessment of the company's credit risk?Explain.What differences do you observe between the two years? (10 Marks)