E4-39. 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 $ 4,150 $ 4,017 Cash and equivalents.. Short-term investments Accounts receivable Current assets Current liabilities.. Total liabilities* Total equity. Earnings before interest and tax (EBIT). Interest expense, gross .. 9,334 16,825 17,860 45,766 52,832 14,804 682 8,633 15,889 19,595 50,785 45,004 13,775 507 2018 2017 *Includes redeemable noncontrolling interests a. Compute the following measures for both years. Measure 1. Current ratio 2. Quick ratio 3. Times interest earned 4. Liabilities-to-equity 2018 2017 b. In which year does the company appear more liquid? c. In which year does the company appear more solvent? 1