The Juice Company reported the following comparative information at December 31, 2018, and December 31, 2017 (amounts in millions and adapted):

Requirements

1. Calculate the following ratios for 2018 and 2017:

a. Current ratio

b. Debt ratio

2. During 2018, The Juice Company issued $1,640 million of long-term debt that was used to retire short-term debt. What would the current ratio and debt ratio have been if this transaction had not been made?

3. The Juice Company reports that its lease payments under operating leases will total $910 million in the future and $160 million will occur in the next year (2019). What would the current ratio and debt ratio have been in 2018 if these leases had been capitalized?

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2017 2018 Current assets. $21,100 $16,800 47,800 Total assets Current liabilities . Total stockholders' equity. Net sales.. . Net income.. 71,800 18,500 30,300 34,600 11,575 13,100 24,600 29,600 7,170