P10-7A You have been presented with the following selected information from the financial statements of one of Canada's largest dairy producers, Saputo Inc. (in millions): 2015 2014 2013 Statement of financial position Accounts receivable $ 785 S 807 $ 625 Inventory 1,006 933 770 Total current assets 1,962 1,896 1,513 Total assets 6,800 6,357 5,194 Current liabilities 1,179 1,725 1,227 Total liabilities 3,172 3,518 2,888 Income statement Net sales $10,658 $9,223 $7,298 Cost of goods sold 7,688 6,518 5,136 Interest expense 73 6934 Income tax expense 237 225 186 Net income 613 534 482 Instructions (a) Calculate each of the following ratios for 2015 and 2014. Industry ratios are shown in parentheses. 1. Current ratio (2015, 1.9:1; 2014, 1.7:1) 2. Receivables turnover (2015, 13.4 times; 2014, 14.0 times) 3. Inventory turnover (2015, 5.9 times; 2014, 6.1 times) 4. Debt to total assets (2015, 58.0%; 2014, 54.0%) 5. Times interest earned (2015, 3.7 times; 2014, 3.0 times) (b) Based on your results in part (a), comment on Saputo's liquidity and solvency