Liquidity refers to the ability of a company to meet its short-term obligations. There are many different ways to measure liquidity. Solvency refers to the ability of a company to meet its long-term obligations. Again, there are many different ways to measure this. I have you compute a Debt/Asset ratio as discussed in lecture. This tells you the % of assets financed by debt as opposed to equity. Round all of the computations to 3 decimal places. --Show The Current Ratio as a decimal. (i.e. if your answer is.3465, round then format it as .347 (that is standard presentation.) --Show the Debt/Asset % as a percentage. (i.e. if your answer is.3472, round then format it as 34.7 (OWL has the % sign, so do not enter that). GPS Current Year Prior Year Current Ratio Debt/Asset % % 10363* / 13679 = 75.8 % *Total liabilities Compute as 'current + noncurrent' or 'Total assets less total equity'. AEO Current Year Prior Year Current Ratio 1047930 / 751756 = 1.394 Debt/Asset % % % If you look these ratios up in a financial database or at one of the many online resources you may find that the answers are not identical to your computations. There are many variations of most of the ratios (definition-wise) and the time-frames may not always match up exactly