You have seen these ratios previously in the lectures and textbook. See Appendix Cpg 728-730 for the "Summary of Financial Ratios." Liquidity refers to the ability of a company to meet its short-term obligations. There are many different ways to measure liquidity. Solvency refers to the ability of a company to meet its long-term obligations. Again, there are many different ways to measure this. I have you compute a Debt/Asset ratio as discussed in lecture. This tells you the % of assets financed by debt as opposed to equity. Round all of the computations to 3 decimal places. --Show The Current Ratio as a decimal. (.e. if your answer is 3465, round then format it as .347 (that is standard presentation) --Show the Debt/Asset % as a percentage. (l.e. if your answer is .3472, round then format it as 34.7 (OWL has the % sign, so do not enter that). Current Year Prior Year GPS Current Ratio Debt/Asset % 4706" / 7610 = 61.8 % *Total liabilities Compute as 'current + noncurrent' or 'Total assets less total equity AEO Current Year Prior Year Current Ratio 901229/493783 = 1.825 Debt/Asset % %