Compute and Interpret Liquidity, Solvency and Coverage RatiosSelected balance sheet and income statement information for Nordstrom, Inc. for 2014 and 2013 follows.($ millions) 2014 2013Cash $ 1,194 $ 1,285Accounts receivable 2,177 2,129Current assets 5,228 5,081Current liabilities 2,541 2,226Long-term debt 3,113 3,131Short-term debt 0 0Total liabilities 6,494 6,176Interest expense 161 160Capital expenditures 803 513Equity 2,080 1,913Cash from operations 1,320 1,110Earnings before interest and taxes 1,350 1,345(a) Compute the following liquidity, solvency and coverage ratios for both years. (Round your answers to two decimal places.)2014 current ratio = Answer2013 current ratio = Answer2014 quick ratio = Answer2013 quick ratio = Answer2014 liabilities-to-equity = Answer2013 liabilities-to-equity = Answer2014 long-term debt-to-equity = Answer2013 long-term debt-to-equity = Answer2014 times interest earned = Answer2013 times interest earned = Answer2014 cash from operations to total debt = Answer2013 cash from operations to total debt = Answer2014 free operating cash flow to total debt = Answer2013 free operating cash flow to total debt = Answer(b) Which of the following best describes the company's credit risk?Both the quick and current ratios for 2014 increased in the past year and are higher than 1.0, implying Nordstrom is relatively liquid. However, interest coverage ratios are high, indicating it may have difficulty making interest payments on its debt. Both the quick and current ratios for 2014 decreased in the past year but are higher than 1.0, implying Nordstrom is relatively liquid. Interest coverage ratios are strong, indicating it has the ability to cover interest payments on its debt. Both the quick and current ratios for 2014 decreased in the past year and are higher than 1.0, implying Nordstrom is would have difficulty converting assets to cash, if needed. However, interest coverage ratios are strong, indicating it has the ability to cover interest payments on its debt. Both the quick and current ratios for 2014 decreased in the past year but are higher than 1.0, implying Nordstrom is relatively liquid. Interest coverage ratios are weak, indicating it may have difficulty making interest payments on its debt.