a) Calculate the current ratio of PG&E in 2021.

b) How will the settlement influence PG&E's current ratio? Give your explanations.

c) Should the amount ($55 million) be disclosed as a contingent liability in 2022?

d) Vistra Corp is another utility provider in California. How do you think this settlement will influence the stock price of Vistra Corp. Give your explanations.

Pacific Gas \& Electric agreed in April 2022 to pay $55 million in penalties and costs to settle civil cases brought by prosecutors over wildfires across six Northern California counties. The victims are estimated to receive the compensation from this year on. PG\&E has also pushed to raise electricity rates to pay for damage rather than collecting from shareholders and risking their bankruptcy. That would allow the companies to continue normal operations without bankruptcy