Compute and Interpret Solvency Ratios Selected balance sheet and income statement information from TWDC Enterprises from its 2018 Form 10-K follows. $ millions 2018 2017 Cash and equivalents $4,399 $4,258 Short-term investments Accounts receivable 9,334 8,633 Current assets 17,835 16,842 Current liabilities 17,860 19,595 Total liabilities* 48,512 53,832 Total equity 52,832 45,004 Earnings before interest and tax (EBIT) 14,804 13,775 Interest expense, gross 723 537 *Includes redeemable noncontrolling interests a. Compute the following measures for both years. Note: Round amount to two decimal places (for example, enter 6.78 for 6.77555). Measure 2018 2017 1. Current ratio 0.86 2. Quick ratio 0.77 0.66 3. Times interest earned 20.48 25.65 4. Liabilities-to-equity 0.92 1.2 b. In which year does the company appear more liquid? 2018 + c. In which year does the company appear more solvent? 2017 +