a. Compute UPS's current ratio and quick ratio for 2014 and 2013. Comment on any observed trends.

b. Compute UPS's time interest earned and its debt-to-equity ratios for 2014 and 2013. Comment on any trends observed.

c. Summarize your findings in a conclusion about the company's liquidity and solvency. Do you have any concerns about its ability to meet its debt obligations?

E5-41 UNITED PARCEL SERVICE Income Staement Year Ended December 31 (S in millions) 2014 2013 2012 558,232 55,43854,127 Compensation and benefits Other operating expenses Operating profit Investment income Interest expense Income before income taxes Income tax expense Net income 32,045 21,219 28,557 19,847 7,034 33,102 19,682 4,637 6,674 974 3,032 $4,372 UNITED PARCEL SERVICE, INC. Balance Sheet December 31 (S millions Assets Cash and cash equivalents Marketable securities Accounts recevable, net Deferred income tax assets Other current assets Total current assets Propert, plant,&equipment, net Goodwill and other intangible assets, net Noncurrent investments and restricted Other noncurrent assets Total assets 2014 2013 2012 2,291 4,665 7,327 6,661 6,111 1,274 11,808 18,281 3,031 489 13,387 17,961 17,894 2,776 535,471 $ 36,212 38,863 Liabilities and shareowners equity Current maturities of long-term debt and Accounts payable Accrued wages and withholdings Self-insurance res erves, current portion Other current liabilities Total current liabilities 923 48 $ 1,781 2,478 2,325 2,278 1,927 2,373 8,639 9,864 11,452 1,64 8,390 11,089 11,068 10,824 Pension and pastretirement benefit oblig Deferred income tax laibilities Self-insurance reserves Other noncurrent liabilities Total liabilities Total shareowners equity Total liabilities and shareowners' equity 35,471 1,244 33,313 29,724 34,130 36,212 38,863