Jeremy Jones, a fixed income analyst, is in the process of analyzing the risks associated with his investment firm's bond portfolio. The first client reviewed by Jones is Smithfield Co., a small-cap company in the basic manufacturing industry. Jones' review will focus on risks (credit risk, liquidity risk, interest rate risk, default risk) associated with Smithfield Co. and its related bonds. As part of his due diligence, Jones has assembled pertinent information in the attached exhibits. Based on the information in the exhibits provided, complete the table below. Calculate the financial ratios pertaining to the credit risk and liquidity risk of Smithfield Co. (columns B and C). For each financial ratio calculated, determine whether the applicable credit risk or liquidity risk increases (column D) based on a comparison of the Year 8 versus Year 7 inserted financial ratio results. Unless noted, calculate ratios to two decimal places. Financial Statement Extracts for Smithfield Co. Smithfield Co. Corporate Bond Issuance Included below is information on the company's outstanding corporate bonds as well as related bond financial covenants. Based on current market conditions, investors expect a recovery rate of 90 percent on the face value of the bonds outstanding. Smithfield's treasurer anticipates that the yield (interest) spread on the outstanding bonds issued will increase by 50 basis points in the near term. Smithfield Bond Financial Covenants