Presented below are the consolidated balance sheets and income statements for Cape Town Enterprises Company, Inc.: (In thousands) Year 2 Year 1 Cash $ 10,300 $ 12,800 Accounts receivable 14,700 13,750 Inventory 14,200 16,700 Marketable securities 8,700 12,950 Equipment, net 90,780 84,564 Total assets $138,680 $140,764 Accounts payable $ 14,000 $ 11,000 Income taxes payable 9,650 5,000 Current portion of long-term debt 12,250 6,500 Long-term obligations 54,780 49,764 Common stock 16,000 27,500 Retained earnings 32,000 41,000 Total liabilities & shareholders' equity $138,680 $140,764 Sales $137,400 $147,000 Cost of goods sold 48,000 42,000 Depreciation expense 12,800 14,700 Other operating expenses 24,500 24,000 Interest expense 2,695 3,190 Income before taxes 49,405 63,110 Income taxes expense 17,400 22,200 Net income $ 32,005 $ 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?