Interive, Inc., is a leading retailer specializing in consumer electronics. A condensed income statement and balance sheet for the fiscal year ended February 1, year 1, are shown below. INTERIVE, INC. Income Statement For the year Ended February 28, year 1 ($ in millions) Revenues $45,600 Costs and expenses 43,139 Operating income 2,461 Investment loss, net (180) Income before income taxes 2,281 Income tax expense 670 Net income $ 1,611 INTERIVE, INC. Balance Sheet At February 28, year 1 ($ in millions) Assets Current assets Cash and cash equivalents $ 504 Short-term investments 17 Accounts receivable, net 1,871 Merchandise inventories 4,771 Other current assets 1,066 Total current assets 8,229 Noncurrent assets 7,644 Total assets $15,873 Liabilities and Shareholders' Equity Current liabilities Accounts payable $ 4,988 Other current liabilities 3,442 Total current liabilities 8,430 Long-term liabilities 2,741 Total liabilities 11,171 Shareholders' equity 4,702 Total liabilities and shareholders' equity $15,873 * Includes $92 of interest expense. Liquidity and financing 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 Interive, Inc. for its fiscal year ended February, 1, year 1: a. Current ratio (0.5 point) b. Acid-test ratio (0.5 point) C. Debt to equity ratio (0.5 point) d. Times interest earned ratio (0.5 point) 2. Using the ratios from requirement 1, assess Interive, Inc's liquidity and solvency relative to its industry. (0.5 point)