Selected balance sheet and income statement information from Verizon Communications, Inc .. follows.

a. Compute the current ratio for each year and discuss any change in liquidity. How does Verizon 's current ratio compare to the median for the telecommunications industry in Exhibit 5.13? What additional information about the numbers used to calculate this ratio might be useful in helping us assess liquidity? Explain.

b. Compute time interest earned. the debt-to-equity. and the operating cash flow to current liabilities ratio???? for each year and discuss any trends for each. ( In 2015. current liabilities totaled $35.052 million.) Compare Verizon's ratios to those that are typical for its industry refer to Exhibit 5.13). Do you have any concerns about the extent of Verizon's financial leverage and the company's ability to meet interest obligations? Explain.

c. Verizon's capital expenditures are expected to remain high as it seeks to respond to competitive pressures to upgrade the quality of its communication infrastructure. Assess Verizon's liquidity and solvency in light of this strategic direction.

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(S millions) 2017 2016 Current assets. Current liabilities. $ 29,913 $ 26,395 30,340 220,148 22,524 ... 33.037 Total liabilities.. Equity..... Earnings before interest and taxes. Interest expense.......... Net cash flow from operating activities. 212,456 43,096 25,327 25,362 4.733 4,376 25,305 22,810