Presented below are the consolidated balance sheets and income statements for Cape Town Products: (In thousands) Cash Accounts receivable Inventory Marketable securities Equipment, net Total assets Year 2 $ 10,300 14,700 14,200 8,700 90.780 $138,680 Year 1 $ 12,800 13,750 16,700 12,950 84.564 $140,764 Accounts payable Income taxes payable Current portion of long-term debt Long-term obligations Common stock Retained earnings Total liabilities & shareholders' equity Sales Cost of goods sold Depreciation expense Other operating expenses Interest expense Income before taxes Income taxes expense Net income $ 14,000 9,650 12,250 54.780 16,000 32,000 $138.680 $137,400 48,000 12,800 24,500 2,695 49,405 17 400 $ 32.005 $ 11,000 5,000 6,500 49,764 27,500 41,000 $140.764 $147,000 42,000 14,700 24,000 3190 63,110 22 200 $ 40.910 A. Evaluate the company's solvency by computing long-term debt to total assets, long-term debt to shareholders' equity, and interest coverage ratio for both years. B. What other debt may appear in the footnotes to the financial statements that may affect a firm's credit risk