es Eastern Sports Company reported the following in recent balance sheets (amounts in millions). (in millions) Assets Current Assets Cash Accounts Receivable Inventory Prepaid Rent Total Current Assets Software Equipment Total Assets Liabilities and Shareholders' Equity Liabilities Current Liabilities Accounts Payable June 30, December 31, 2018 2019 $ 417 $ 480 1,023 482 1,245 626 69 45 2,754 1,633 387 184 1,319 604 $ $ 4,460 2,421 $ 708 $ 579 Notes Payable (short-term) Income Tax Payable Total Current Liabilities Notes Payable (long-term) Total Liabilities 0 2 67 5 775 586 158 102 933 688 Stockholders' Equity Common Stock 148 50 Retained Earnings 3,379 1,683 Total Shareholders' Equity 3,527 1,733 Total Liabilities and Shareholders' Equity $ $ 4,460 2,421 Required: 1. Calculate the current ratio at June 30, 2019, and December 31, 2018. 2-a. Did the company's current ratio increase or decrease? 2-b. What does this imply about the company's ability to pay its current liabilities as they come due? 3-a. What would Eastern Sports current ratio have been on June 30, 2019, if the company were to have paid down $10 (million) of its Accounts Payable? 3-b. Does paying down Accounts Payable in this case increase or decrease the current ratio? 4. Are the company's total assets financed primarily by liabilities or stockholders' equity at June 30, 2019?