Parker Hannifin Corporation, headquartered in Cleveland, Ohio, manufactures motion control and fluid system components for a variety of industrial users. The firm's financial statements contain the following data (Year 3 is the most recent year; dollar amounts are in thousands):

a. Calculate Parker Hannifin's current ratio (current assets/current liabilities) for Years 1, 2, and 3.

b. Calculate Parker Hannifin's operating-cash-flow-to-current-liabilities ratio for Years 1,2, and 3.

c. Comment on the three-year trend in Parker Hannifin's current ratio and operating-cash-flowto-current-liabilities ratio. Do the trends in these two ratios reinforce each other or contradict each other as indicators of Parker Hannifin's ability to pay its current liabilities?

d. Calculate Parker Hannifin's operating-cash-flow-to-capital-expenditures ratio for Years 1, 2, and 3. Comment on the strength of this ratio over the three-year period.

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Year 3 Year 2 Year 1 Current assets at year-end... Current liabilities at year-end. $1,018,354 $1,056,443 $1,055,776 504,444 468,254 358,729 Current liabilities at beginning of year 468,254 358,729 345,594 Cash provided by operating activities..... 259,204 229,382 235,186 Capital expenditures.... 99,914 91,484 84,955