12. (Modified) Please answer the following questions regarding solvency ratios. a. What do the two type of solvency ratios - Leverage and Coverage ratios - measure? Give example of at least two common ratios of each type. b. Answer the following regarding the first type of Solvency Ratios - Leverage Ratios. What are two ways in which you can assess Total Liabilities (similar discussion exists for Long-term Liabilities)? What is the difference between the two and how is each measured? What are two ways value of debt and equity can be determined. When should each be used? c. Answer the following regarding the second type of Solvency Ratios - Coverage Ratios. Why is net income not used to compute coverage ratios? Which is the preferred Coverage Ratio? Explain. d. Do these ratios depend on leverage ratios? Explain