Memoryman, a maker of computer memory devices, reports the following information in its financial statements. Assume that you are a loan officer at a major bank and have been assigned the task of evaluating whether to extend a loan for a plant expansion to the company.

Required

a. Calculate the company's current ratio, debt-to-total-assets ratio, return on sales ratio, and free cash flow for each year.

b. Comment on Memoryman's liquidity, solvency, and profitability.

c. Based on what you have learned about Memoryman, would you recommend offering the company a loan?

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(in millions) Current assets Total assets Current liabilities.. Total liabilities. Retained earnings Net sales.... Cost of goods sold Net income.. Cash flow from operating activities.. Cash flow from investing activities Cash flow from financing activities.. Expenditures for property, plant, and equipment. 2019 2018 2017 $ 4,356 $4,033 $2,915 10,175 8,777 6,002 1,093 960 871 3,114 2,997 2,093 1,797 813 (487) 5,662 4,827 3,567 3,223 2,565 2,282 987 1,300 415 1,054 1,452 488 (667) (2,715) (375) (48) 991 25 (193) (108) (60)