The following selected information was taken from the financial statements of one of the world's largest convenience store operators, Montreal-based Alimentation Couche-Tard Inc. (in U.S. $ millions):

Instructions
(a) Calculate each of the following ratios for 2015 and 2014. Industry ratios are shown in parentheses.
1. Current ratio (2015, 1.7:1; 2014, 1.5:1)
2. Receivables turnover (2015, 29.2 times; 2014, 30.8 times)
3. Inventory turnover (2015, 10.7 times; 2014, 14.9 times)
4. Debt to total assets (2015, 44.0%; 2014, 40.0%)
5. Times interest earned (2015, 12.0 times; 2014, 9.0 times)
(b) Based on your results in part P10.7B(a), comment on Alimentation Couche-Tard's liquidity and solvency.
(c) Alimentation Couche-Tard has an unused operating line of credit of over U.S. $3 billion. Why would a bank be willing to provide such a large line of credit?

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2015 20142013 el ia Accounts receivable Inventory Total current assets Total assets Current liabilities Total liabilities $1,195 1,726 $ 1,616 846 2,707 3,215 3,281 10,838 10,545 10,546 2,415 2,6633,138 6,9316,568 7,329 860 848 ei Net sales Cost of goods sold Interest expense Income tax expense Net income $34,530 $37,962 $35,543 29,262 32,974 30,934 118 74 812 573 92 306 933 134