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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 ($ millions)
Compute and Interpret Liquidity, Solvency and Coverage Ratios Selected balance sheet and income statement information for Calpine Corporation for 2004 and 2006 follows ($ millions) 2004 2006 Cash Accounts receivable Current assets Current liabilities Long-term debt Short-term debt Total liabilities Interest expense Capital expenditures Equity Cash from operations Earnings before interest and taxes $1,576.73 $ 1,543.36 1,097.16735.30 3,238.56 3,443.33 3,285.39 6,057.95 16,790.81 3,291.63 1,033.96 4,568.83 22,628.42 25,623.17 1,516.90 1,288.29 ,845.48211.50 4,587.67 (7,152.90) 165.98 1,937.84 20.89 1,589.84 (a) Compute the following liquidity, solvency and coverage ratios for both years. (Round your answers to two decimal places.) 2006 current ratio 0 2004 current ratio0 2006 quick ratio0 2004 quick ratio 0 2006 liabilities-to-equity0 2004 liabilities-to-equity0 2006 total debt-to-equity0
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