The Consolidated Statement of Financial Position 12. What is meant by the term "capital structure"? 13. Calculate and explain the following ratios for the current & the prior year: a. Debt Ratio b. Equity Ratio c. Interest Coverage Ratio Is the change in each ratio favorable or unfavorable? How does this relate to overall risk with respect to investing in the shares of Big Rock? (Hint: Consider the pro's & cons of debt versus equity financing in your discussion.) 14. In the Equity section of the Statement of Financial Position, I see negative numbers for 2018 and 2017 called Accumulated Deficit? What does this mean? 15. What is liquidity and how is Big Rock doing with its liquidity position this year? Is it better or worse than last year? Calculate and explain the following ratios: a. Current Ratio b. Quick Ratio 16. Cash flows from regular operations are dependent on the ability to sell inventory and collect cash on credit sales. How many days on average would it take for Big Rock to sell finished goods inventory and collect cash from credit customers? Calculate and explain the following ratios: a. Days to Sell Inventory b. Average Collection Period Note to Students: Use ending balances for receivables and inventory balances instead of average balances. Also, for 13(a), do not include inventory related to raw materials, containers, or brews in progress as only completed brews would be sold to customers. 17. Note 11 to the financial statements shows an A/R Aging. What is this? Are there any items of concern when you examine the A/R Aging in 2018 relative to the prior year