Selected balance sheet and income statments information from Verizon Communications Inc. Follows:

($ Millions) 2013 2012 Current Assets $70,994 $21,235 Current Liabilities 27,050 28,956 Total Liabilities 178,682 139,689 Equity 95,416 85,533 Earnings Before Interest & Taxes 31,944 12,468 Interest Expense 2,667 2,571 Net Cash Flow From Operating Activities 38,818 31,486

A) Compute the current ratio for each year and discuss any trent in liquidity. What additional information about the numbers used to compute this ratio might be useful in helping you assess liquidity? Explain.

B) Compute times interest earned, total liabilities-to-equity, and cash from operations to total debt ration for each year and discuss any trends for each. Hint: Verizon's total debt was $93,591 and $52,257 for 203 and 2012 respectively. Do you have any concerns about the extent of Verizon's financial leverage and the company's ability to meet interest obligations? Explain.

C) Verizon's capital expenditures are expected to increase substaintially as it seeks to respond to competitive pressures to upgrade the quality of its ocmmunications infrastructure. Assess Verizon's liquidity and solvency in light of this strategic direction.

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