Signal Corp engages in the operation and ownership of general merchandise stores. It offers food assortments including perishables, dry grocery, dairy, and frozen items. Using all the tools including common size vertical and trend analysis, analyze the capital structure of the company. Use the three step approach where you state the facts, evaluate the reasons behind the facts and finally come to a conclusion.

BALANCE SHEET OF SIGNAL CORPORATION

JAN $23$

JAN $22$

JAN $\text{'}21$

Assets

Cash & Short$-$Term Investments

$2229$

$5911$

$8511$

Cash Only

$886$

$926$

$867$

Total Short Term Investments

$1343$

$4985$

$7644$

Short$-$Term Receivables

$1695$

$1353$

$1135$

Accounts Receivables, Net

$526$

$518$

$504$

Other Receivables

$1169$

$835$

$631$

Inventories

$13499$

$13902$

$10653$

Other Current Assets

$423$

$407$

$457$

Prepaid Expenses

$188$

$170$

$171$

Miscellaneous Current Assets

$235$

$237$

$286$

Total Current Assets

$17846$

$21573$

$20756$

Net Property, Plant & Equipment

$34169$

$30737$

$29106$

Other Long$-$Term Investments

$447$

$605$

$638$

Intangible Assets

$645$

$656$

$668$ Other Long$-$Term Investments

Intangible Assels

$645$

$655$

$658$

Tangible Other Assets

$728$

$240$

$80$

Total Assets

$53335$

$53811$

$51248$

Liabilities & Shareholders' Equity

ST Debt & Curr. Portion LT Debt

$2026$

$425$

$1355$

Accounts Payable

$11887$

$15478$

$12859$

Income Tax Payable

$473$

Other Current Liabilities

$5587$

$5844$

$5438$

Dividends Payable

$497$

$424$

$341$

Accrued Payroll

$1492$

$1789$

$1846$

Miscellaneous Current Liabilities

$3598$

$3631$

$3251$

Total Current Liabilities

$19500$

$21747$

$20125$

Long$-$Term

Long$-$Term Debt

$18647$

$16042$

$13754$

Long$-$Term Debt excl Lease Obligations

$14066$

$11582$

$9770$

Capital and Operating Lease Obligations

$4581$

$4460$

$3984$

Provision for Risks & Charges

$37$

$45$

$57$

Deferred Tax Liabilities

$2196$

$1566$

$990$

Other Liabilities

$1723$

$1584$

$1882$

Other Liabilities $($excl$.$ Deferred Income$)$

$1274$

$1105$

$1373$

Deferred Income

$449$

$479$

$509$

Total Liabilities

$42103$

$40984$

$36808$

Equity

Common Equity

$11232$

$12827$

$14440$