3.2: Analyze current and long-term liabilities; evaluate debt-paying ability EnviroFriend Structures, Inc., builds environmentally sensitive structures. The company's 2018 revenues totaled $2,780 million. At December 31, 2018, and 2017, the company had, respectively, $656 million and $591 million in current assets. The company's balance sheets and income statements reported the following amounts: A1 1 At year-end (In millions) 2 Liabilities and stockholders' equity 3 Current liabilities 4 Accounts payable 5 Accrued expenses 6 Employee compensation and benefits 7 Current portion of long-term debt 8 Total current liabilities 9 Long-term bonds payable 10 Deferred income taxes payable 11 Leases payable 12 Common stockholders' equity 13 Total liabilities and stockholders' equity 14 Year-end (in millions) 15 Cost of goods sold 16 B 2018 2017 $ 148 $ 184 149 177 14 30 3 20 314 411 1,485 1.313 134 131 5 23 1,844 1,584 $3,782 $3,462 $2,656 $2,046 Requirements 1. Describe each of EnviroFriend's long-term liabilities and state how the liability arose. 2. What were the company's total assets at December 31, 2018? Evaluate the company's leverage and debt ratios at the end of 2017 and 2018. 3. Did the company improve, deteriorate, or remain about the same over the year?