i need your help to solve the below question for these mini case:

hudson Valley Realty owns a number of commercial properties in suburban towns north and east of New York City. One of them used to be rented to an upscale department store that was best known for jewelry and fine china but also sold everything from chandeliers to bed linens to lawn furniture. The building became vacant two years ago when the tenant broke a ten-year lease after only three years of occupancy and unexpectedly filed for bankruptcy. Hudson Valley considered any effort to recover early termination penalties a waste of time and money. Interest expense, high real estate taxes, insurance, and security costs make it extremely expensive to hold vacant property in this area. Although Hudson Valley is obviously eager to find a new tenant, it does not want another unexpected vacancy to have a serious negative effect on its investment returns. Hudson Valley wants to be sure the new tenant will be financially stable and will likely stay for at least the full term of the lease. Vermont Heritage, a well-known furniture chain that targets affluent customers with traditional tastes, has expressed interest in the location. Peter Cortland, Hudson Valleys rental manager, wants to take a close look at the potential tenants financial statements before entering into more serious negotiations. Vermont Heritage has submitted the following audited income statements and balance sheets for the last three years. Vermont Heritage: Income Statement ($ in millions) 2011 2010 2009 Sales $949.00 $955.10 $907.30 Cost of goods sold $466.60 $472.80 $436.60 Gross profit $482.40 $482.30 $470.70 Selling and administrative expenses $332.30 $320.80 $315.60 Depreciation $21.30 $21.30 $21.30 Other income (expenses) $1.40 ($9.20) ($11.90) EBIT $130.20 $131.00 $121.90 Interest expense (net of interest income) $0.80 $0.60 $0.60 Taxable income $129.40 $130.40 $121.30 Taxes $49.20 $50.10 $45.90 Net income $80.20 $80.30 $75.40 Dividends $24.06 $20.08 $18.85 Vermont Heritage: Balance Sheets ($ in millions) ASSETS 2011 2010 2009 LIABILITIES 2011 2010 2009 Current assets Current liabilities Cash and cash items $57.40 $61.60 $81.90 Accounts payable $20.40 $22.20 $26.10 Accounts receivable $28.02 $27.00 $26.40 Short-term notes $4.20 $4.70 $101.00 Inventory $187.13 $186.90 $198.20 Other current liabilities $6.40 $7.37 $8.00 Other current assets $56.52 $54.20 $53.80 Total current assets $329.07 $329.70 $360.30 Total current liabilities $31.00 $34.27 $135.10 Net fixed assets $275.20 $277.00 $289.40 Long-term debt $3.20 $4.50 $9.20 Other assets $88.80 $81.70 $81.80 Other long-term liabilities $5.50 $52.40 $50.20 Total liabilities $39.70 $91.17 $194.50 OWNERS EQUITY Common stock $230.00 $230.00 $230.00 Retained earnings $423.37 $367.23 $307.00 Total owners equity $653.37 $597.23 $537.00 TOTAL ASSETS $693.07 $688.40 $731.50 TOTAL LIABILITIES AND OWNERS EQUITY $693.07 $688.40 $731.50 In your initial response to the topic you have to answer 2 or 3 of the first set of questions as well as the last question. ^{4. Look at Vermont Heritages EBIT, interest expense, and debt accounts (current liabilities, long-term debt,and other liabilities) over the three-year period. Comparing debt to equity, do you think the company seems to have excessive debt? Would you expect the company to have any problems meeting its interest payments? Please explain your answer. 5. Dividends have increased as a percentage of net income. Why do you think the company decided to pay out more of its earnings to shareholders? Please explain your answer. 6. Compare current assets with current liabilities. Would you expect Vermont Heritage to have any problems meeting its short-term obligations? Please explain your answer. Overall, do you think Vermont Heritage will be a relatively safe tenant for Hudson Valleys building? Please explain your answer_.}