Condensed and simplified financial statements with comparative data for Canadian Tire Corporation, Limited for the years ended December 29, 2012, and December 31, 2011, are shown below. CANADIAN TIRE CORPORATION, LIMITED Balance Sheet December 29 (in millions) 2011 $ 6,993.4 668.9 128.2 1,110.0 72.4 3,365.9 $12,338.8 2012 Assets Current assets $ 7,789.0 Long-term receivables and other assets 681.2 Long-term investments 182.7 Goodwill and intangible assets 1,089.9 Investment property 95.1 Property and equipment 3,343.5 Total assets $13,181.4 Liabilities and Shareholders' Equity Liabilities Current liabilities $ 4,624.1 Long-term debt 2,336.0 Long-term deposits 1,111.8 Other long-term liabilities Total liabilities 8,417.8 Shareholders' equity Share capital 688.0 Other equity items 1.2 Retained earnings 4,074.4 Total shareholders' equity 4,763.6 Total liabilities and shareholders' equity $13,181.4 S 4,153.0 2,347.7 1,102.2 326.9 7,929.8 345.9 710.5 12.1 3,686.4 4,409.0 $12,338.8 CANADIAN TIRE CORPORATION, LIMITED Income Statement Year Ended December 29 (in millions) Operating revenue Total expenses Profit before income tax Income tax expense Profit 2012 $11,427.2 10,784.6 642.6 143.4 $ 499.2 2011 $10,387.1 9,775.9 611.2 144.2 467.0 Additional information: Canadian Tire's profit is the same as its profit available to common shareholders. The weighted average number of shares was 81.4 million in both 2012 and 2011. The share price was $69.11 at the end of 2012, and $65.90 at the end of 2011. Industry averages are as follows: current ratio, 1.4:1 in 2012 and 1.5:1 in 2011; debt to total assets, 25.9% in 2012 and 24.2% in 2011; and price-earnings ratio, 14.1 times in 2012 and 12.3 times in 2011. Industry averages are not available for earnings per share. Instructions (a) Calculate Canadian Tire's current ratio for both fiscal years. Discuss the company's liquidity generally, and com- pared with the industry. (b) Calculate Canadian Tire's debt to total assets for both fiscal years. Discuss the company's solvency generally, and compared with the industry