E4-26. Compute and Interpret Liquidity, Solvency, and Coverage Ratios Selected balance sheet and income statement information for Starbucks for 2018 and 2017 follows. 2017 $2,462.3 228.6 870.4 5,283.4 4,220.7 $ millions 2018 Cash... $ 8,756.3 Short-term investments 181.5 Accounts receivable 693.1 Current assets. 12,494.2 Current liabilities. 5,684.2 Short-term debt. 349.9 Long-term debt. 9,090.2 Total liabilities. 22,980.6 Interest expense. 170.3 Capital expenditures. 1,976.4 Equity ... 1,175.8 Cash from operations .. 11,937.8 Earnings before interest and taxes. 3,883.3 Required a. Compute the following liquidity, solvency and coverage ratios for both years. 3,932.6 8,908.6 92.5 1,519.4 5,457.0 4,251.8 4,134.7 Liquidity ratios Current ratio Quick ratio Solvency ratios Liabilities-to-equity ratio Total debt-to-equity ratio Coverage ratios Times interest earned Cash from operations to total debt Free operating cash flow to total debt b. What is your overall assessment of the company's credit risk? Explain. What differences do you observe between the two years