(a) Compute Costcos current ratio and quick ratio for 2018 and 2017. (Round answers two decimal places.) 2018 current ratio = Answer 2017 current ratio = Answer 2018 quick ratio = Answer 2017 quick ratio = Answer (b) Compute Costcos times interest earned and its liabilities-to-equity ratios for 2018 and 2017. In 2017, Costco reported earnings before interest and tax (EBIT) of $4,111 million and interest expense of $134 million. (Round answers two decimal places.) 2018 times interest earned = Answer 2017 times interest earned = Answer 2018 liabilities-to-equity = Answer 2017 liabilities-to-equity = Answer (c) Summarize your findings about the companys liquidity and solvency. Do you have any concerns about Costcos ability to meet its debt obligations? (Choose one)

Costco's liabilities-to-equity ratio decreased thus its solvency has declined.

Costco's times interest earned ishigh thus there is concern for Costco's solvency.

Costco's quick and current ratios slightly increased therefore its liquidity has declined.

Costco'stimes interest earned ratio is high thus solvency is not a concern forCostco.

Analysis and Interpretation of Liquidity and Solvency Balance sheets and income statements for Costco Wholesale Corporation follow