182. (Related to Checkpoint 18.1 on page 573) (Measuring firm liquidity) The following table contains current asset and current liability balances for Microsoft Corporation (MSFT): 2008 2006 Cash and cash equivalents Short-term investments Net receivables Inventory Other current assets Total current assets 10,339,000 13,323,000 15,606,000 985,000 2,989,000 43,242,000 2007 6,111,000 17,300,000 13,237,000 1,127,000 |_ 2,393,000 40,168,000 6,714,000 27,447,000 11,256,000 1,478,000 | 2,115,000 49,010,000 12,830,000 9,521,000 0 Accounts payable Short-tem/current long-term debt Other current liabilities Total current liabilities 6,612,000 2,741,000 14,401,000 23,754,000 17,056,000 29,886,000 12,921,000 22,442,000 a. Assume that you are the lead banker for the syndicate of banks that manages Microsoft Corporation's line of credit. Your boss has asked that you report to him on the current state of Microsoft's liquidity. How would you describe the liquidity of Microsoft in 2008? b. Have there been recent changes in Microsoft's liquidity? If so, have the changes been to improve the firm's liquidity? Explain your observations