Partial Classified Balance Sheet for Walgreens The following items, listed alphabetically, appear on Walgreens’ consolidated balance sheet at August 31, 2008 (in millions):
Accrued expenses and other liabilities $2,272
Deferred income tax (long-term) 150
Long-term debt 1,337
Other noncurrent liabilities 1,410
Short-term borrowing 83
Trade accounts payable 4,289

Required
1. Prepare the Current Liabilities and Long-Term Liabilities sections of Walgreens’ classified balance sheet at August 31, 2008.
2. Walgreens had total liabilities of $8,210 and total shareholders’ equity of $11,104 at August 31, 2007. Total shareholders’ equity at August 31, 2008, amounted to $12,869. (All amounts are in millions.) Compute Walgreens’ debt-to-equity ratio at August 31, 2008 and 2007. As an investor, how would you react to the changes in this ratio?
3. What other related ratios would the company’s lenders use to assess the company? What do these ratios measure?