ASSETS Current assets Cash and equivalents Short-term investments Accounts receivable Battista Products Balance Sheet as of December 31, 2007 and December 31, 2006 is in millions) 2007 2006 Change LIABILITIES 2007 2006 Current liabilities $1,651 $ 1.716 - S 65 Accounts payable $ 5,271 $ 5.357 - 86 $ 1,171 $ 3,166 -$2.615 -$1,995 Short-term debt $ 274 $ 2,889 Other current liabilities $ 1.315 $ 1.160 $ 155 $ 3.725 $ 3.261 $ 464 Total current liabilities $ 6,860 $ 9.406-$2.546 $ 1,926 $ 1,693 $ 233 Long-term debt $ 2,550 $2,313 $ 237 $ 1,073 $ 1.688 $ 657 $ 39 Other long-term liabilities -5615 $ 618 Total liabilities $10,483 $13.407 - $2,924 Inventories Other current assets $ 9,130 $ 0 Total current assets Net plant, property. and equipment Other long-term assets $ 9.687 $10,454 -51.324 OWNERS' EQUITY Common stock $ 8,681 $1.006 Retained earnings $ 2,107 $ 167 Total owners' equty TOTAL LIABILITIES AND $21.242 -$ 151 OWNERS' EQUITY $ 2,614 $ 2.614 $ 7,994 $ 5,221 $10,608 $ 7.835 $2,773 $2,773 $ 2.274 $21,091 $21.242 - 151 TOTAL ASSETS $21,091 FIGURE 2.1 . . Calculate Current Ratio for 2006 and 2007. . Does this ratio indicate any problem in the company or not? Explain in 2-3 lines. Reply None Collanse All