The following information was taken from the financial statements of Peter’s of Buckingham Ltd (in millions), reported on its web site: 

Required

Discuss the change in Peter’s solvency, liquidity and ability to generate cash from operations to finance capital expenditure. Use the capital expenditure ratio, free cash flow, current cash debt coverage, cash debt coverage and the cash return on sales ratio to support your position.

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Total liabilities Current liabilities Net cash provided (used) by operations Net cash provided (used) by investing Net cash provided (used) by financing Sales revenue Capital expenditure 2018 $19632 7576 7433 (3270) (4776) 20 737 (3 683) 2017 $20 177 5834 7057 (2 492) (4317) 20 495 (3332) 2016 $24113 8230 7098 (3258) (3817) 20 196 (3662) 2015 $23751 9279