La-Z-Boy Incorporated included the following information in its 2014 annual report (dollars in millions).

Define solvency and discuss how this information might be useful in assessing the company€™s solvency position. What drawbacks are associated with using this information in such a way?

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2014 2013 $ 98 $150 Cash Accounts receivable 159 153 Inventory 157 147 Other current assets 63 73 $477 $523 Total current assets Current liabilities 155 167 $322 $356 Current assets minus current liabilities