Balance sheet as of end of 2005			Balance sheet as of end of 2006
Cash $5	Current Liab $5		Cash $10	Current Liab $5
A/R $5	Long Term Debt $15		A/R $5	Long Term Debt $25
	Common Stock $20			Common Stock $15
PP&E $40	R/E $10		PP&E $40	R/E $10
Assets $50	Total $50		Assets $55	Total $55
Income statement for 2006
Sales	$100
Costs	70
Depreciation	10
Interest	5
Net Income	$15
Dividends = $15; R/E=$0

What is true ?

		The long-term solvency of the firm deteriorated in 2006 relative to that in 2005.
		The long-term solvency of the firm did not change in 2006 relative to that in 2005.
		The long-term solvency of the firm improved in 2006 relative to that in 2005.