Eastern Sports Company reported the following in recent balance sheets (amounts in millions). (in millions) June...

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Eastern Sports Company reported the following in recent balance sheets (amounts in millions). (in millions) June December 30, 31, 2018 2019 Assets Current Assets Cash $ 417 $ 480 Accounts Receivable 1,023 482 Inventory 1,245 626 Prepaid Rent 69 45 Total Current Assets 2,754 1,633 Software 387 184 Equipment 1,319 604 $ $ 2,421 4,460 Total Assets Liabilities and Shareholders' es Equity Liabilities Current Liabilities Accounts Payable $ 708 $ 579 Notes Payable (short-term) 0 2 Notes Payable (long-term) Income Tax Payable Total Current Liabilities Total Liabilities 67 5 775 586 158 102 933 688 Stockholders' Equity Common Stock 148 50 Retained Earnings 3,379 1,683 Total Shareholders' Equity 3,527 1,733 Total Liabilities and Shareholders' $ Equity $ 2,421 4,460 Required: 1. Calculate the current ratio at June 30, 2019, and December 31, 2018. 2-a. Did the company's current ratio increase or decrease? 2-b. What does this imply about the company's ability to pay its current liabilities as they come due? 3-a. What would Eastern Sports current ratio have been on June 30, 2019, if the company were to have paid down $10 (million) of its Accounts Payable? 3-b. Does paying down Accounts Payable in this case increase or decrease the current ratio? 4. Are the company's total assets financed primarily by liabilities or stockholders' equity at June 30, 2019? Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 28 Req 3A Req 38 Req 4 Calculate the current ratio at June 30, 2019, and December 31, 2018. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) Numerator Denominator Current Ratio June 30, 2019 December 31, 2018 Prev 11 Eastern Sports Company reported the following in recent balance sheets (amounts in millions). (in millions) June December 30, 31, 2018 2019 Assets Current Assets Cash $ 417 $ 480 Accounts Receivable 1,023 482 Inventory 1,245 626 Prepaid Rent 69 45 Total Current Assets 2,754 1,633 Software 387 184 Equipment 1,319 604 $ $ 2,421 4,460 Total Assets Liabilities and Shareholders' es Equity Liabilities Current Liabilities Accounts Payable $ 708 $ 579 Notes Payable (short-term) 0 2 Notes Payable (long-term) Income Tax Payable Total Current Liabilities Total Liabilities 67 5 775 586 158 102 933 688 Stockholders' Equity Common Stock 148 50 Retained Earnings 3,379 1,683 Total Shareholders' Equity 3,527 1,733 Total Liabilities and Shareholders' $ Equity $ 2,421 4,460 Required: 1. Calculate the current ratio at June 30, 2019, and December 31, 2018. 2-a. Did the company's current ratio increase or decrease? 2-b. What does this imply about the company's ability to pay its current liabilities as they come due? 3-a. What would Eastern Sports current ratio have been on June 30, 2019, if the company were to have paid down $10 (million) of its Accounts Payable? 3-b. Does paying down Accounts Payable in this case increase or decrease the current ratio? 4. Are the company's total assets financed primarily by liabilities or stockholders' equity at June 30, 2019? Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 28 Req 3A Req 38 Req 4 Calculate the current ratio at June 30, 2019, and December 31, 2018. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) Numerator Denominator Current Ratio June 30, 2019 December 31, 2018 Prev 11