Selected balance sheet and income statement information from Verizon Communications, Inc., for 2005 through 2007 follows ( \(\$\) millions).

a. Compute the current ratio for each year and discuss any trend in liquidity. Do you believe the company is sufficiently liquid? Explain. What additional information about the accounting numbers comprising this ratio might be useful in helping you assess liquidity? Explain.

b. Compute times interest earned and the liabilities-to-equity ratio for each year and discuss any noticeable change.

c. What is your overall assessment of the company's liquidity and solvency from the analyses in

(a) and (b)? Explain.

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Total Current Assets Total Current Liabilities 2005 $19,320 $26,700 $2,129 $102,017 Pretax Interest Total Stockholders' Income Expense Liabilities $8,448 Equity $66,113 2006.... 22,538 32,280 8,154 2,349 111,932 76,872 2007 18,698 24.741 9,492 1,829 104,090 82,869