Integrative Inc. is a leading retailer specializing in consumer electronics. A condensed income statement and balance sheet for the Fiscal Year ended February 28, year 1 are shown below.

Integrative Inc.

Balance Sheet

At February 28, year 1

(In Millions)

Current Assets
Cash & Cash Equivalents	$504
Short-term investments	17
Accounts Receivable (net)	1,871
Inventory	4,771
Other current assets	1,066
Total current assets	8,229
Long-term assets	7,644
Total Assets	15,873
Current liabilities
Accounts payable	4,988
Other current liabilities	3,442
Total current liabilities	8,430
Long-term liabilities	2,741
Shareholders equity	4,701
Total liabilities & SE	15,873

Integrative Inc. Balance Sheet At February 28, year 1
Revenues	45,600
(Cost and Expenses)	(43,139)
Operating income	2,461
Other income/expense	(180)
Income before taxes	2,281
Income tax exp.	(670)
NET INCOME	1,611

Liquidity and solvency ratios for the industry are as follows:

Industry Average

Current ratio 1.23

Acid-test ratio 0.60

Debt to equity 0.70

Times interest earned 5.66 times

Required:

1. Determine the following ratios for Integrative for its fiscal year ended February 28, year 1.
   1. Current ratio
   2. Acid-test ratio
   3. Debt to equity ratio
   4. Times interest earned ratio

Using the ratios from requirement 1, assess Integratives liquidity and solvency relative to its industry