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Calculate and Comment on company's long term solvency position, using three ratios for year 2018. RFT Corporation Statement of financial position Years ended 2017 and

Calculate and Comment on company's long term solvency position, using three ratios for year 2018.

RFT Corporation Statement of financial position Years ended 2017 and 2018 ($ in millions) 20172018 20172018Cash$980$960Accounts payable$950$730Accounts rec.$950$880Notes payable$40$150Inventory$2,120$1,750 Total$990$880 Total$5,050$3,590Long-term debt$2,225$100Fixed assets$1,700$2,540Common stock$2,030$3,570 Retained earnings$505$1,580Total assets$5,750$6,130Total liabilities and Owners equity$5,750$6,130

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