Compute and Interpret Liquidity, Solvency and Coverage Ratios

Selected balance sheet and income statement information for Calpine Corporation for $2004$ and $2006$ follows.

$($a$)$ Compute the following liquidity, solvency and coverage ratios for both years. $($Round your answers to two decimal places.$)$

$2006$ current ratio $=$

$2004$ current ratio $=$

$2006$ quick ratio $=$

$2004$ quick ratio $=$

$2006$ liabilities$-$to$-$equity $=$

$2004$ liabilities$-$to$-$equity $=$

$2006$ total debt$-$to$-$equity $=$

$2004$ total debt$-$to$-$equity $=$

$2006$ times interest earned $=$

$2004$ times interest earned $=$

$2006$ cash from operations to total debt $=$

$2004$ cash from operations to total debt $=$

$2006$ free operating cash flow to total debt $=$

$2004$ free operating cash flow to total debt $=$

$($b$)$ Which of the following best describes the company's credit risk?