I'm looking for help on Problem 10.7A from page 476 of the 18th edition of Financial and Managerial Accounting, Williams. "The following items were taken form the accounting records of Murfreesboro Telephone Corporation (MTC) for the year ended December 31,2018 (dollar amounts are in thousands)."

Other info:

1. The 6 3/4 percent bonds due in February 2019 will be refinanced in January 2019 though the issuance of $150,000 in 9%, 20-year bonds payable.

2. The 8 1/2% bonds due June 1, 2019, will be repaid entirely from a bond sicking fund.

3. MTC is committed to total lease payments of $14,400 in 2019. Of this amount, $7,479 is applicable to operating leases, and $6,921 to capital leases. Payments on capital leases will be applied as follows: $2,300 to interest expense and $4,621 to reduction in the capitalized lease payment obligation.

4. MTC's pension plan is fully funded with an independent trustee.

5. The obligation for postretirement benefits other than pensions consists of a commitment to maintain health insurance for retired workers. During 2019, MTC will fund $18,000 of this obligation.

6. The $17,300 in income tax payable relates to income taxes levied in 2018 and must be paid on or before March 15, 2019. No portion of the deferred tax liability is regarded as a current liability.

Instructions:

a. Using this information, prepare the current liabilities and long-term liabilities sections of MTC's classified balance sheet as of December 31, 2018. (Within each classification, items may be listed in any order.)

b. Explain briefly how the information in each of the six numbered paragraphs affected your presentation of the company's liabilities.

c.Compute as of December 31, 2018, MTC's (1) debt ratio and (2) interest coverage ratio.

d. Solely on the basis of information state in this problem, indicate whether this company appears to be an outstanding, medium, or poor long-term credit risk. State specific reasons for your conclusion.

Thank you!