FedEx Corporation, a world leader in express mail services, reported the following in its May 31, 2015, financial statements (dollars in millions):

                                                         5/13/15
Current assets .............................$10,941
Current liabilities ............................5,957
The company’s long-term debt contains restrictive covenants that require the maintenance of certain financial ratios. Assume that these covenants require that the company’s current ratio be at least 1.0.

REQUIRED:
a. What additional dollar value of current liabilities could have been reported as of May 31, 2015, without violating the debt covenant?
b. List several current liabilities that management may have been able to control to ensure at year-end that the covenant was not violated, and explain how these liabilities could have been controlled.
c. Explain what could happen if the company violated the covenant.
d. Assume that at the end of 2015, FedEx considered a $5 billion fleet aircraft purchase. Assume also that the company has the necessary cash. Should the company pay cash or should it purchase the aircraft using long-term debt, and why? Support your answer with calculations.