Selected balance sheet and income statement information from Verizon Communications, Inc, for 2012 and 2011 follows (\$ millions).

a. Compute the current ratio for each year and discuss any trend in liquidity. Do you believe the company is sufficiently liquid? Explain. What additional information about the accounting numbers comprising this ratio might be useful in helping you assess liquidity? Explain.

b. Compute times interest earned and the liabilities-to-equity ratio for each year and discuss any noticeable change.

c. What is your overall assessment of the company's liquidity and solvency from the analyses in parts \(a\) and \(b\) ? Explain.

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Total Current Assets 2012. $21,235 2011... 30,939 Total Current Liabilities $26,956 30,761 Pretax Interest Total Stockholders' Income Expense Liabilities Equity $ 9,897 $2,571 $139,689 10,483 2,827 144,553 $85,533 85,908