B. Analyze the ratio of fixed assets to long-term liabilities measure of solvency for Sparkit using the attached Figure A1.2 Excel file by doing the following:

1. Discuss why it is important for Sparkit's financial manager to understand the ratio of fixed assets to long-term liabilities.

2. Discuss how the ratio of fixed assets to long-term liabilities influences Sparkit's IT department's operational sustainability.

3. Provide the ratio of fixed assets to long-term liabilities value for Fiscal Year 2 from Figure A1.2, including how you calculated your answer.

4. Provide the final value for the ratio of fixed assets to long-term liabilities, including how you calculated your answer.

                                                                    

	Fiscal Year 1	Fiscal Year 2
Long-term Assets:
Property, plant, & equipment	$28,175	$32,401
Less accumulated depreciation	$13,355	$15,351
Property, plant, & equipment (net)	$14,825	$17,041
Operating right of use (net)	$2,826	$3,111
Long-term financing receivables	$5,541	$5,921
Prepaid pension assets	$6,428	$6,611
Deferred costs	$993	$1,041
Deferred taxes	$6,324	$6,451
Goodwill	$54,085	$57,321
Intangible assets (net)	$11,855	$12,321
Investments & sundry assets	$1,462	$1,491
Total Long-term Assets	$104,334	$111,341
Long-term Liabilities:
Long-term debt	$9,743	$9,452
Retirement & non pension obligations	$10,263	$9,752
Deferred income	$3,493	$3,662
Operating lease liabilities	$2,354	$2,522
Other long-term liabilities	$12,423	$11,432
Total Long-term Liabilities	$38,294	$36,822
Total Liabilities	$71,463	$72,512