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Compute and Interpret Liquidity, Solvency and Coverage Ratios Selected balance sheet and income statement information for Calpine Corporation for 2004 and 2006 follows. 2004 2006

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Compute and Interpret Liquidity, Solvency and Coverage Ratios Selected balance sheet and income statement information for Calpine Corporation for 2004 and 2006 follows. 2004 2006 ($ millions) $1,256.73 $1,523.36 Cash Accounts receivable 1,097.16 735.30 3,268.33 Current assets 3,313.56 6,057.95 3.285.39 Current liabilities 17,150.81 3,531.63 Long-term debt 4568 83 1.033.96 Short-term debt 22,898 42 25.503.17 Total liabilities 1516.90 1288.29 Interest expense t 545.48 211.50 Capital expenditures 4587.67 (7.252.90) Equity 335.98 19.89 Cash from operations 1659 84 t907.84 Earnings before interest and taxes 2006 total debt-to-equity 3.74 X 2004 total debt-to-equity (0.49)

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