ncome statements and balance sheets follow for Snap-On Incorporated. Refer to these financial statements to answer the requirements.
SNAP-ON INCORPORATED
Consolidated Statements of Earnings
(Amounts in millions)	For the fiscal year ended
	2016		2015
Net sales	$3,430.40		$ 3,352.8
Cost of goods sold	(1,720.8	)	(1,704.5
Gross profit	1,709.60		1,648.30
Operating expenses	(1,054.1	)	(1,053.7
Operating earnings before financial services	655.5		594.6
Financial services revenue	281.4		240.3
Financial services expenses	(82.7	)	(70.1
Operating income from financial services	198.7		170.2
Operating earnings	854.2		764.8
Interest expense	(52.2	)	(51.9
Other income (expense) -- net	(0.6	)	(2.4
Earnings before income taxes and equity earnings	801.4		710.5
Income tax expense	(244.3	)	(221.2
Earnings before equity earnings	557.1		489.3
Equity earnings, net of tax	2.5		1.3
Net earnings	559.6		490.6
Net earnings attributable to noncontrolling interests	(13.2	)	(11.9
Net earnings attributable to Snap-on Incorporated	$ 546.4		$ 478.7
SNAP-ON INCORPORATED
Consolidated Balance Sheets
(Amounts in millions)	Fiscal Year End
	2016		2015
Cash and cash equivalents	$ 77.6		$ 92.8
Trade and other accounts receivable - net	598.8		562.5
Finance receivables - net	472.5		447.3
Contract receivables - net	88.1		82.1
Inventories - net	530.5		497.8
Deferred income tax assets	0		109.9
Prepaid expenses and other assets	116.5		106.3
Total current assets	1,884.00		1,898.70
Property and equipment - net	425.2		413.5
Deferred income tax assets	72.8		106.3
Long-term finance receivables - net	934.5		772.7
Long-term contract receivables - net	286.7		266.6
Goodwill	895.5		790.1
Other intangibles - net	184.6		195
Other assets	39.9		44
Total assets	$ 4.723.2		$4,486.90
Notes payable and current maturities of	$ 301.4		$ 18.4
long-term debt
Accounts payable	170.9		148.3
Accrued benefits	52.8		52.1
Accrued compensation	89.8		91
Franchisee deposits	66.7		64.4
Other accrued liabilities	307.9		296.3
Total current liabilities	989.5		670.5
Long-term debt	708.8		861.7
Deferred income tax liabilities	13.1		169.8
Retiree health care benefits	36.7		37.9
Pension liabilities	246.5		227.8
Other long-term liabilities	93.4		88.5
Total liabilities	2,088.00		2,056.20
Preferred stock
Common stock	67.4		67.4
Additional paid-in capital	317.3		296.3
Retained earnings	3,384.90		2,986.90
Accumulated other comprehensive income (loss)	(498.5	)	(364.2
Treasury stock at cost	(653.9	)	(573.7
Total shareholders equity attributable to	2,617.20		2,412.70
Snap-on Inc.
Noncontrolling interests	18		18
Total shareholders equity	2,635.20		2,430.70
Total liabilities and shareholders equity	$4,723.20		$4,486.90
Required:
a.	Compute the companys current ratio and quick ratio for fiscal 2016 and 2015. Comment on any observed trend.
b.	Compute the companys times interest earned and liabilities-to-equity ratio for 2016 and 2015. Comment on any observed trend.
c.	Summarize your findings in a conclusion about the companys liquidity and solvency. Do you have any concerns about the companys ability to meet its debt obligations?