The following information was obtained from the comparative financial statements included in IBM's 2010 annual report. (All amounts are in millions of dollars.)

Required
1. Using the information provided, compute the following for 2010 and 2009:
a. Debt-to-equity ratio (at each year-end)
b. Times interest earned ratio
c. Debt service coverage ratio
d. Cash flow from operations to capital expenditures ratio
2. Comment briefly on the company's solvency.

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Total liabilities Total equity December 31, 2010 $90,279 23,172 December 31, 2009 $86,267 22,755 For the Years Ended December 31 2010 2009 Interest expense Interest paid on debt Provision for income taxes Income taxes paid-net of refunds received Net income Net cash provided by operating activities Cash dividends paid Payments for plant, rental machines and other $ 368 951 4,890 3,238 14,833 19,549 3,177 $ 402 1,240 4,713 1,567 13,425 20,773 2,860 property Payments to settle debt 4,185 6,522 3,447 13,495