The following information is given about a company: (Php millions) 2013 Short-term borrowings 2,240 Current potion of long-term 2,000 interest-bearing debt Long-term interest-bearing 12,000 debt Total shareholders' equity 23,250 EBIT 3,850 Interest payments 855 Operating lease payments 800 Solvency has improved because the debt-to-equity ratio decreased O improved because the debt-to-equity ratio increased deteriorated because the debt-to-equity ratio increased deteriorated because the debt-to-equity ratio decreased 2012 5,400 1,200 9,000 21,175 3,800 837 800